Risk

GJGreyling

Coaching Member
Joined
Mar 15, 2015
Messages
37
Points
62
From my experience, ‘rich’ people don’t like to take risks. This probably sounds opposite to the common advice of more risk equals more reward. When people suggest that you ‘up the ante’ I think what they really mean is not to increase risk but to rather to play a bigger game.

When you read the books of people like Donald Trump and Robert Kiyosaki, they are always looking for ‘guarantees’ on their money. The idea is to limit risk, not to increase it. Robert Kyiosaki even says in some of his books that he doesn’t like to risk his own money.

Ok I know we are not all self made billionaires, but I suppose the idea is there. Always have a plan B if things do go wrong and try to have guarantees if that is possible. I’m not suggesting that we try not to risk our money; all I'm saying is try your hardest to limit risk without having to give up reward.

Robert Kiyosaki even states that good investors are like shoppers, they get all their money back as quickly as possible while keeping the asset.

Here is a video on risk by Tony Robbins: http://www.entrepreneur.com/video/244090
 

Javi92

Member
Joined
Mar 29, 2015
Messages
24
Points
20
Location
Madrid, Spain
Hey there!

I have read Robert Kiyosaki too, and I like his view.

It's not that rich people don't take risks at all, but that they control the situations they get into and know exactly what they are doing.

The "higher risk, higher reward" applies if you have the same knowledge in both situations. For example: I invest in the stock market, and when I do a trade, I can choose to leverage it so that a 1% move in the market becomes a 5% move in my investment. This is a clear risk-reward situation, which goes 2 ways: either I make more or lose more.

On the other hand, you could find a better investment that will give you a higher return but without increasing the risk. You need to be more skilled to find the better investment, which is what Kiyosaki continually talks about: financial knowledge.
 

J E Roberson

Senior Advisor
Joined
Jun 9, 2014
Messages
284
Points
252
Location
Colorado USA
Great information GJ. With this topic the line between Life risk and Investment risk can get blurred.

In life all entrepreneurs are risk takers. In dealings with their money, like you said probably not .

In investments always have a plan B, in life a person with a plan B will never accomplish lofty goals.
 

Erica Faith

Coaching Member
Joined
Feb 1, 2015
Messages
49
Points
57
Hi there, GJ!

My husband deals in antiques and he takes business risks everyday like morning coffee. In a business such as this one, it's very important to mitigate and limit the risks involved in every transaction.
 

Thora

Advisor Member
Joined
Mar 22, 2015
Messages
24
Points
35
Location
Iceland
I think that the greatest risk you take is getting out of your comfort zone, change things in your life that you've grown accustomed to. It is perceived risk in following your heart, your dreams. It is acting in spite of fear of the unknown. Going against the accepted norm.

There is a great book on this subject called, Risky is the new Safe by Randy Gage. It is a must read!

Live easy!
Thora MJ
 

Charles

New Member
Joined
Apr 9, 2015
Messages
2
Points
0
Location
Statesbro, Ga
From my experience, ‘rich’ people don’t like to take risks. This probably sounds opposite to the common advice of more risk equals more reward. When people suggest that you ‘up the ante’ I think what they really mean is not to increase risk but to rather to play a bigger game.

When you read the books of people like Donald Trump and Robert Kiyosaki, they are always looking for ‘guarantees’ on their money. The idea is to limit risk, not to increase it. Robert Kyiosaki even says in some of his books that he doesn’t like to risk his own money.

Ok I know we are not all self made billionaires, but I suppose the idea is there. Always have a plan B if things do go wrong and try to have guarantees if that is possible. I’m not suggesting that we try not to risk our money; all I'm saying is try your hardest to limit risk without having to give up reward.

Robert Kiyosaki even states that good investors are like shoppers, they get all their money back as quickly as possible while keeping the asset.

Here is a video on risk by Tony Robbins: http://www.entrepreneur.com/video/244090
Hey!
I have to strongly disagree with not taking risks. The only way to grow and expand in life is to do those 'uncomfortable' things that you would not normally do and this also applies in business. You must stick your neck out there in order to gain some traction and get the ball rolling. Even though being risky is a gamble, 'playing it safe' is even more of a gamble.
Thanks for taking the time to write this forum!
 

Chris Desatoff

Advisor Member
Joined
Apr 4, 2015
Messages
28
Points
42
I have an opinion on this too, but I'm not a rich person. So I feel like my opinion here isn't really a big deal haha. I mean, in this context of risking money, wouldn't you rather follow the advice of rich, successful people who actually know what they're talking about than to follow the advice of some random dude on the Internet who's struggling and has never been all that successful in his life (I'm the random dude, by the way).

Everyone can give advice, but not everyone can give advice that they know actually works, based on their own personal success.
 

Ethanbridges

Advisor Member
Joined
Apr 28, 2015
Messages
33
Points
40
I have to strongly disagree with not taking risks.
There's no argument. GJ didn't speak about not taking risks at all.

I have an opinion on this too, but I'm not a rich person. So I feel like my opinion here isn't really a big deal haha. I mean, in this context of risking money, wouldn't you rather follow the advice of rich, successful people who actually know what they're talking about than to follow the advice of some random dude on the Internet who's struggling and has never been all that successful in his life (I'm the random dude, by the way).

Everyone can give advice, but not everyone can give advice that they know actually works, based on their own personal success.
Hey Chris! Greetings from a random internet dude to another! :cool:

I agree with all that you said, but it isn't something to worry about, I think. People will eventually know who to believe, eh?

I support healthy discussions. I hope you're doing fine though; I'm only wondering, why do you feel your opinion "isn't really a big deal"? Well, it's something I just noticed.

Great site by the way. :)
 

Patrick Frank

Advisor Member
Joined
Dec 15, 2014
Messages
43
Points
45
Location
Arden, NC
From my experience, ‘rich’ people don’t like to take risks. This probably sounds opposite to the common advice of more risk equals more reward. When people suggest that you ‘up the ante’ I think what they really mean is not to increase risk but to rather to play a bigger game.

When you read the books of people like Donald Trump and Robert Kiyosaki, they are always looking for ‘guarantees’ on their money. The idea is to limit risk, not to increase it. Robert Kyiosaki even says in some of his books that he doesn’t like to risk his own money.

Ok I know we are not all self made billionaires, but I suppose the idea is there. Always have a plan B if things do go wrong and try to have guarantees if that is possible. I’m not suggesting that we try not to risk our money; all I'm saying is try your hardest to limit risk without having to give up reward.

Robert Kiyosaki even states that good investors are like shoppers, they get all their money back as quickly as possible while keeping the asset.

Here is a video on risk by Tony Robbins: http://www.entrepreneur.com/video/244090
 

Patrick Frank

Advisor Member
Joined
Dec 15, 2014
Messages
43
Points
45
Location
Arden, NC
In life, I do take risks, but try to cafefully evaluate the possible consequences of every action. I avoid impulsivity. But risk-taking plays a part in living a full life. If we strive to stay safe all the time, it will simply make for a very boring life.