Investment Risk - Company Risk

Hi! Have you ever thought of owning your very own company? Thankfully, in the market-driven capitalist nations of the world (where most readers of this blog live), you don't need to start your own corporation to be a part owner of a viable company...

That's obviously great news. But beware, there is one rather LARGE downside:

Capitalism operates on the principle of creative destruction, which is closely tied to a non-biological version of Darwin's 'survival of the fittest' premise.

This means that when you begin any selection process of companies to invest in for long-term economic growth, my advice would be to take your time!

Otherwise, you leave yourself wide open to a type of investment risk called company risk. If you would like to learn more about this subject, then you're welcome to read an article I've written on the subject entitled Investment Risk - Company Risk.

Also, if your interest in the subject of investment risk runs much deeper than just wanting to learn about one narrow facet of it, you're warmly welcome to sign up for a FREE month-long eCourse ! It comprises 16 lessons that will be emailed to you at 2-day intervals, and will rapidly teach you the basic concepts of investment risk and 15 different specific forms of investment risk.

You may sign up here for this unique freebie entitled Understanding Investment Risk & Profiting From It!

I hope you enjoy both the article and the eCourse.

Take care.

Warmest regards,


Rajen

PS. If you'd like to join others who have opted to have me work with them to help improve their performance in the areas of personal finance, goal-setting and time management, please take the time to decide if this option is right for you...

After years of thinking about it, I've finally launched a 'lite' version of my elite life planning consulting package. This shorter, online-based version lasts a whole three months, and focuses on the three core life planning areas of personal finance, goal-setting and time management.

The price of this 13-week email- and online-based consulting package is less than one-ninth of my regular consulting rates.

If you're interested, drop me a quick email to

mailto:sales@RajenDevadason.com
(or simply copy-and-paste sales@RajenDevadason.com
into a fresh email) with

'Rajen, please tell me about your new consulting package',

in your subject header.

Warning: This service is NOT for everyone.

Please only write to me about it if you are 100% serious about joining this programme.

Thanks. Stay well.


Rajen Devadason is CEO of RD Book Projects and its sister company RD WealthCreation Sdn Bhd. He lives in sunny, peaceful Malaysia with his gorgeous wife Rachel. He's a Malaysian Securities Commission-licensed financial planner, a life planning consultant, a professional speaker and a serial author... which probably explains why he's so exhausted! Some of his books are available here, and, if you're interested, here are some quotations he reckons are accurate, bold or cool.

Investment Risk - Borrowing Risk

Hi! There is a salutary lesson each of us can draw from history. I'm specifically referring to the Great Depression, which began in October 1929 and lasted throughout the 1930s...

This is the heart of that lesson:
Those who borrowed money for their homes and their stock investments found themselves skating on micro-thin ice when bad times hit. Those who were not carrying too much debt ended up in better shape than those who did.

That's not to say it is unwise to borrow money for the right reasons. Good debt can be a tremendous builder of personal and corporate wealth. Unfortunately, but ever so predictably, bad debt can be - and usually is - an effective destroyer of dreams and long-term financial health.

If you'd like to learn more about the specific subject of borrowing risk, you're welcome to read an article I've written on the subject entitled Investment Risk - Borrowing Risk.

Also, if your interest in the subject of investment risk runs much deeper than just wanting to learn about one narrow facet of it, you're warmly welcome to sign up for a FREE month-long eCourse ! It comprises 16 lessons that will be emailed to you at 2-day intervals, and will rapidly teach you the basic concepts of investment risk and 15 different specific forms of investment risk.

You may sign up here for this unique freebie entitled Understanding Investment Risk & Profiting From It!

I hope you enjoy both the article and the eCourse.

Take care.

Warmest regards,


Rajen

PS. If you'd like to join others who have opted to have me work with them to help improve their performance in the areas of personal finance, goal-setting and time management, please take the time to decide if this option is right for you...

After years of thinking about it, I've finally launched a 'lite' version of my elite life planning consulting package. This shorter, online-based version lasts a whole three months, and focuses on the three core life planning areas of personal finance, goal-setting and time management.

The price of this 13-week email- and online-based consulting package is less than one-ninth of my regular consulting rates.

If you're interested, drop me a quick email to

mailto:sales@RajenDevadason.com
(or simply copy-and-paste sales@RajenDevadason.com
into a fresh email) with

'Rajen, please tell me about your new consulting package',

in your subject header.

Warning: This service is NOT for everyone.

Please only write to me about it if you are 100% serious about joining this programme.

Thanks. Stay well.


Rajen Devadason is CEO of RD Book Projects and its sister company RD WealthCreation Sdn Bhd. He lives in sunny, peaceful Malaysia with his gorgeous wife Rachel. He's a Malaysian Securities Commission-licensed financial planner, a life planning consultant, a professional speaker and a serial author... which probably explains why he's so exhausted! Some of his books are available here, and, if you're interested, here are some quotations he reckons are accurate, bold or cool.

Investment Risk

Hi! I got to thinking recently about the desire most of us have to grow seriously rich...

Hasn't it ever struck you as decidedly odd that while the desire burns deep inside the vast majority of humanity, so few of us take the time and trouble to learn about the realities of money and investing?

I mean, if you were interested in medicine or aviation or baking, you'd invest the cerebral sweat to gain a sound understanding of your chosen area of interest. Yet, why is it when it comes to the very interesting, very relevant issue of growing wealth, most people simply decide to 'wing it'?

Let me give you a very concrete example: A classic area of unnecessary ignorance is the vital relationship between potential profits and the risks taken on to achieve them. Within the investment fraternity, it's officially called the Risk-Reward Relationship.

In the simplest of terms, the Risk-Reward Relationship tells us that the amount of profit or 'investment reward' a person can rationally hope to achieve from an investment is directly linked to the amount of 'investment risk' he or she is willing to put up with.

If you're even mildly interested in this subject, then I invite you to read an easy, brief article I've written on the subject entitled Investment Risk - Understanding and Profiting From It!

On the other hand, if you are very interested in this subject, then I suggest you sign up for a FREE month-long eCourse on the subject of Investment Risk. It comprises 16 lessons that will be emailed to you at 2-day intervals, and will rapidly teach you the basic concepts of investment risk and 15 different specific forms of investment risk. You may sign up here for this unique freebie entitled Understanding Investment Risk & Profiting From It!

I hope you enjoy both the article and the eCourse.

Take care.

Warmest regards,


Rajen

PS. If you'd like to join others who have opted to have me work with them to help improve their performance in the areas of personal finance, goal-setting and time management, please take the time to decide if this option is right for you...

After years of thinking about it, I've finally launched a 'lite' version of my elite life planning consulting package. This shorter, online-based version lasts a whole three months, and focuses on the three core life planning areas of personal finance, goal-setting and time management.

The price of this 13-week email- and online-based consulting package is less than one-ninth of my regular consulting rates.

If you're interested, drop me a quick email to

mailto:sales@RajenDevadason.com
(or simply copy-and-paste sales@RajenDevadason.com
into a fresh email) with

'Rajen, please tell me about your new consulting package',

in your subject header.

Warning: This service is NOT for everyone.

Please only write to me about it if you are 100% serious about joining this programme.

Thanks. Stay well.


Rajen Devadason is CEO of RD Book Projects and its sister company RD WealthCreation Sdn Bhd. He lives in sunny, peaceful Malaysia with his gorgeous wife Rachel. He's a Malaysian Securities Commission-licensed financial planner, a life planning consultant, a professional speaker and a serial author... which probably explains why he's so exhausted! Some of his books are available here, and, if you're interested, here are some quotations he reckons are accurate, bold or cool.

Financial Planning - If You Plan To Retire... Beware!

Hi! I just read a truly depressing news item. I guess the reason it caught my attention is that I have several financial planning and investment clients who are themselves pilots. This news story involved pilots in a rather bleak manner. Let me explain...

It appears that the American airline Delta is in such bad financial shape that it has to cancel the pension plan of its pilots! Can you imagine working hard to qualify as a commercial airline pilot, then flying in all kinds of weather for decades believing your pension plan was secure only to have it wrested away from you just as your planned-for-retirement comes into view? Here's a brief excerpt of that story. I suggest you take the time to read the full piece:


CNN.com - Delta files to cancel pilots' pension plan - Aug 4, 2006:
"Delta files to cancel pilots' pension plan
Friday, August 4, 2006; Posted: 8:53 p.m. EDT (00:53 GMT)

Delta says a wave of pilot retirements would cause massive disruption to its operations.

ATLANTA, Georgia (AP) -- Delta Air Lines Inc. filed a formal request with bankruptcy court late Friday to terminate its pilots' pension plan, as U.S. President George W. Bush prepared to sign a bill aimed in part at helping the struggling carrier save its other employees' pensions.
If the court in New York approves Delta's request to cancel its pilots' pensions effective September 2, the government's pension insurer would take over the plan and pay pilots a reduced benefit based on when they retire and other factors. A hearing on the request is set for September 1.
The 6,000 pilots, as part of a $280 million concessions agreement with the company first reached in April, have agreed not to oppose the pension termination request, though other groups may oppose it. "


If such a thing can happen to the super-skilled men who link our global village together with their vital flying skills, it can happen to any of us.

In the case of my clients, at least I have the comfort of knowing that I've done the best I can to get each one to take personal responsibility for his or her retirement funding. But what about you?

I urge you take a serious look at your personal ability to invest wisely. I hope these two free articles also prove useful to you:

How To Start Saving Money and
Why Bother With Dividend Investing?

Do use them to help jumpstart your thinking about what you can and should do about taking full personal responsibility for funding your future retirement.

As you do so, I hope and pray you never have to deal with a situation as blatantly unfair and tragic as the Delta pilots' pension fiasco.

Should you want more direct help from me in this department, do check out the PS section below. Thanks for dropping by.

Warmest regards,


Rajen

PS. If you'd like to join others who have opted to have me work with them to help improve their performance in the areas of personal finance, goal-setting and time management, please take the time to decide if this option is right for you...

After years of thinking about it, I've finally launched a 'lite' version of my elite life planning consulting package. This shorter, online-based version lasts a whole three months, and focuses on the three core life planning areas of personal finance, goal-setting and time management.

The price of this 13-week email- and online-based consulting package is less than one-ninth of my regular consulting rates.

If you're interested, drop me a quick email to

mailto:sales@RajenDevadason.com
(or simply copy-and-paste sales@RajenDevadason.com
into a fresh email) with

'Rajen, please tell me about your new consulting package',

in your subject header.

Warning: This service is NOT for everyone.

Please only write to me about it if you are 100% serious about joining this programme.

Thanks. Stay well.


Rajen Devadason is CEO of RD Book Projects and its sister company RD WealthCreation Sdn Bhd. He lives in sunny, peaceful Malaysia with his gorgeous wife Rachel. He's a Malaysian Securities Commission-licensed financial planner, a life planning consultant, a professional speaker and a serial author... which probably explains why he's so exhausted! Some of his books are available here, and, if you're interested, here are some quotations he reckons are accurate, bold or cool.