This semester, myself and a few of my friends suffered through this grueling class called Corporations…. (Shutters)
For the most part it was a sucky experience. Honestly the only thing I took away from that class was the lesson on diversification.
As I sit back and go through my stock portfolio I realize that I have not been diversifying my stocks. I have stock that is not accruing any interest and there is no payout in sight. My portfolio is weak! I am not sure how many of you actually get my analogy. But I’ll help you out.
Many of us have made some bad investments. We have acquired useless stock that has not given us the return we deserve. Our portfolio’s are weak. Translation, DROP THE TRASH! It is easier said then done. I know. Trust me. I know. But how long are we going to waste money/ time on our bad investments? Now the trash does not have to be your man or your girl, (although most of the time it is), but it can be your job or your friends.
We are afraid to make risky investments (take chances), because we are afraid of the potential loss. But this is why we must diversify, so that when one stock plummets, we have another more profitable one to take its place. SB: For the cheaters and players out there, this does NOT mean you have the right to be a dog. I am not talking about that type of diversification. Maybe if you chose your stock wisely you wouldn’t have to keep diversifying. But I digress…
Wake up people! We can’t be afraid to take chances. Leaving your house is a risk. Living in the Bronx is a risk! How long are we going to stick with these bad investments? When are you going to trade that stock in for something that has good face value and may lead to stable and positive returns?
Diversification is not just about choosing any stock. Let’s just clear that up. I’m not sending you to go out and just take uncalculated risks. That would just be stupid. Taking risks is not a whimsical thing. I think this is where many of us go wrong. A true risk taker calculates the probability of success and failure and assess the risk to see if it is worth taking. If it’s worth it, you take the risk. Mind you there is still a possibility of failure. However, the possibility that it will succeed is greater.
A lot of us sit here and let other people buy up all the good stock. We let them take the risks that the should have taken. Then when the time comes to do an evaluation of our portfolio, we sit back and wonder what the hell went wrong. I will tell you what went wrong. You didn’t man up! (or woman up). It’s like double dutch. Your afraid to jump in because your either embarrassed that your gonna mess up or that you’re going to get hit with the rope…
I don’t know about you, but it’s time to stop being cowards. Stop being punks. Because while you’re sitting here like a “bia bia”, someone else is acquiring assets that should have been yours…