The father of my colleagues invested heavily in real estate. Immediately after he retired from his job, he invested his entire retirement benefits in real estate. And he kept expanding the business by building more houses. My co-worker usually tells me that real estate is the best investment because of less risk. It is common for him to say that he or his father will never invest in Bitcoin because it has high risk.
There was a flood in a section of my country that destroyed lives and properties. His father lost about seven blocks of flats which is all he has in life. The houses were not issued, so he is totally broke.
Lessons
- Diversify your assets. Don't invest all you have in a single asset.
- If you are investing in real estate, let your properties be in different locations. My friend's father lost all his property because they were in the same place.
- insure your assets and businesses. Insurance can help reduce the effect of a loss.
From the story above I can say that people need to understand that not taking risks is another risk because as they all think real estate is the most promising type of investment they don’t use to consider natural disasters which also makes real estate investments a risky investment.
Diversity is a very important key in investment because by diversifying your investments you are creating more securities for yourself and also increasing your possibilities of gaining higher profits.
Well bitcoin investment is so far trying to become the most promising investment because of it security even though bitcoin is much riskier diversity is crucial and that is why investors need to diversify their investments and make more research to understand the best investment strategy to that will fit with their style of investing.