As an
investor, I think that it is important to also consider high-risk investments. Yes,
we could be successful in diversified portfolios. Yes, we understand the
economy’s saving grace for mutual funds and bonds. However, spreading ourselves
thinly to gain something from everything is like trying to impress everybody
when we know we can’t.
A high-risk
investment comes my way and I’ll study it further. I consider investments
dangerous when they’re innovative, but not too compelling. Another would be a business
structure that is so simple, it seems too easy and too good to be true. Another
would be an investment for a friend; I value friendship, but I will never do
business for a friend because of the emotional attachment involved.
Yet one of
these three hold the key to success. Look at smartphone applications; many of
these games have a unique innovation, but to make them “presentable” to the
public, it will need several hundred thousand dollars. I might not be compelled
by the innovation as an investor because I’ve seen the idea before, but they
just changed the characters and improved the levels.
A too-simple
business strategy is something that a kid could come up with without having to
explain other details, but sometimes, these business strategies actually work
in application. A marketing strategy, for as long as it compels consumers to
purchase your products, is an effective marketing strategy regardless of the message.
A simple, emotional and clever quirk to such a business strategy might just be
the right ingredient for a success story.
So don’t be
afraid to risk it. Even with family or friend investors, a sound reasoning
could entail high-risk, but may possibly reel you in with high success.
