By John Sage Melbourne
Welcome to the 2nd part in my series about the Zurich Axioms. Today,we’re going to cover the first major axiom and what it indicates for you. So,as I discussed in the last post,the reason why the Swiss investment companies of the 1980’s were so successful was due to their understanding of threat.
They understood risk better than anything else related to the investment and made smart investing decisions based on risk alone in most cases. Let’s take a better look at the first axiom.
The First Major Axiom
How frequently do you feel concerned about things in life? You may think that being stressed suggests illness and that it is terrible for your body,but in truth,concern is a good thing,and you ought to learn to accept it.
In the first major axiom on threat,we find out that being worried about something suggests that you’re taking a risk,and to be successful in your investments and in life,you require to take risks almost daily.
Some risks are more considerable than others,and they’ll stress you more than others too. Still,if you feel worried and nervous about something,that suggests that it’s worth pursuing and has the opportunity to make you wealthy.
The Swiss knew this,and they welcomed their fears and worries and learned to silence them and even take pleasure in the feeling.
You must too.
Minor Axiom I: Constantly bet significant stakes
Building on the last point,if the fear of losing the amount invested does not frighten you,then the possibility of making a high percentage gain isn’t likely. You must get in the playing field unless you prepare to win and win big at that.
In order to win big,you need to invest more than you feel comfortable. Remember– I’m not advising you make bad choices,however I am advising that you look for danger and concern in your financial investments. That’s how you succeed in the long run.
Minor Axiom II: Resist the lure of diversification
You’ve most likely heard the investing saying “do not put all of your eggs in one basket” before. It’s a caution that investors must diversify their portfolio,so they aren’t risking it all on simply one investment.
Here’s the important things– diversity has 3 significant flaws that your financial advisor most likely does not want to inform you:
1. It goes versus the theory if betting considerable stakes and winning huge.
2. When one location of your portfolio has gains,the gains are balanced out by losses in another location,and you only recover cost if you’re lucky.
3. You’ll lose focus of your crucial investments.
You shouldn’t hesitate of danger,and you must put your money where your mouth is. Treat investing like a game and the only way to win is to win big.
There are still eleven more Zurich Axioms that you need to find out,and I’m going to cover them in future post. Provide John Sage Melbourne a follow on social media and subscribe to this blog,so you don’t miss an entry in this series.