The latest post on ARRDPD is about risk.  Here’s my favourite quote:

Then again late night Saturday I was sitting at a No-Limit Texas Hold’em Poker tourney.  I had done fairly well to become chip leader with 9 players left.  I began to tighten up.  I had all these chips and I didn’t want to lose them.  An hour later I was the short stack.  Wow! How did that happen?  I was playing not to lose.

I commented about my grandfather and how he is extremely risk-averse, and would not invest in a franchise that would have doubled his normal ROI (he invests in zero-risk bonds, GICs and the like).
What’s your risk tolerance?  I’m a fairly wreckless person, I admit to driving too fast, drinking a bit too much, and my investments show it.  But, I’m only 26 and can afford a lot of risk at this point (financially).  My belief is that you can’t succeed in life without taking some risks.

 Risks (in no particular order):

  1. Purchased a house at age 20
    – the house appreciated by almost 50% over the next 5 years
    – last year we used the equity to put 25% down on a much nicer home
  2. Purchased an investment property at age 25
    – the property needed some work, but provides a positive income
  3. Purchased a second invesmtnet property at age 26
  4. Got married
  5. Completed a Masters degree

All of these risks have paid off for me in one way or another.  Without having taken them, I can’t imagine how boring life would be.

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