15 Risk Reduction Lessons from My Guests

In this episode, Andrew Stotz explains the 15 risk reduction lessons he has learned from his guests.

Download the The Investor's Risk Reduction Checklist.

1 Get the power of compounding working for you now, and don’t interrupt it.

Dan Solomon from Ep434:  The Time to Start Investing Is Now

2 Do your own research before making any investment. Do not rely on others.

Travis Watts from Ep381: Do Your Due Diligence and Keep Your Investment Simple

Curt Mercadante from Ep438: Not Every Home Is an Investment

Furqan Aziz from Ep441: Validate Every Idea You Invest Time In

3 Have a rigorous thought process when evaluating investments, and stick to that process.

Shashank Randev from Ep352: There Is No Surefire Formula to Venture Capital Investing

4 Expect long-term returns of about 8% and consider that investments above that could be “too good to be true.”

Pete Alexander from Ep284: Pete Alexander – If the Real Estate Deal Sounds Too Good to Be True, It Is

5 Build a network of experienced professionals who can give you input.

Sarah Larbi from Ep177: Build a Network of Successful Role Models to Avoid this Real Estate Investing Mistake

6 Always spend time considering the risk before investing.

Furqan Aziz from Ep441: Validate Every Idea You Invest Time In

7 Size your position according to your ability to handle a loss. If the risk is high, start small.

Furqan Aziz from Ep441: Validate Every Idea You Invest Time In

Eric Rosenberg from Ep403: Start Investing by Making Regular Monthly Contributions

Kittisak Kovintavewat from Ep432: Kittisak Kovintavewat – Be an Investor, Not a Speculator

8 Consider the “unknowns” with any investment idea.

Daniel Ramsey from Ep159: When Investing in Real Estate Take Your Time to Remove the Unknowns

9 Invest in things that you can quickly exit. If you can’t, demand a very high return and deploy a small amount of your money.

Pete Alexander from Ep284: Pete Alexander – If the Real Estate Deal Sounds Too Good to Be True, It Is

10 Walk away from an investment as soon as you realize it’s not going to work.

Furqan Aziz from Ep441: Validate Every Idea You Invest Time In

Shashank Randev from Ep352: There Is No Surefire Formula to Venture Capital Investing

11 Remember that past success does not guarantee future success.

Randy Mortensen from Ep444: Randy Mortensen – Past Success Doesn’t Guarantee Future Success

12 When investing in a foreign country, consider the risks of both the asset and the currency.

Santiago Iñiguez from Ep324: Sometimes Your Worst Investment Can Bring You the Most Joy

13 Focus on company performance, not only stock price.

Kittisak Kovintavewat from Ep432: Kittisak Kovintavewat – Be an Investor, Not a Speculator

14 Invest in good quality companies rather than betting on poor companies turning around.

Kittisak Kovintavewat from Ep432: Kittisak Kovintavewat – Be an Investor, Not a Speculator

15 Expect that some of your investment ideas will fail; not every stock you pick will be a winner.

Eric Rosenberg from Ep403: Start Investing by Making Regular Monthly Contributions

 

Andrew’s books

• How to Start Building Your Wealth Investing in the Stock Market
• My Worst Investment Ever
• 9 Valuation Mistakes and How to Avoid Them
• Transform Your Business with Dr.Deming’s 14 Points

Andrew’s online programs

• Valuation Master Class
• The Become a Better Investor Community
• How to Start Building Your Wealth Investing in the Stock Market
• Finance Made Ridiculously Simple
• Best Business Book Club
• Become a Great Presenter and Increase Your Influence
• Transform Your Business with Dr. Deming’s 14 Points

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• My Worst Investment Ever Podcast