
The Primary Concern for the true investor is placing a present day value on a feature benefit, forecasting feature revenue and expenses.
Purchasing a home is the single one of the best investments
Future value of land
Leveraging
Tax benefits
Investor Characteristics
• A good rate of return
• The security of that rate of return
• Potential for the investment to grow in value
Elements when considering investment decision
• Risk
• Appreciation “inflation, supply & demand”
• Liquidity
• Marketability
• Management
• Yield
When purchasing consider
• Appreciation or depreciation in feature value
• Operating expenses
• Financial leverage
• Income taxes
• Vacancy rate
For most investors, who do not have the time or the inclination to research their portfolio properly, diversification is an important tool for ensuring that a disaster that destroys a certain sector won't wipe out your entire investment.
If you have all your money invested in one or two stocks, and you don't keep up with events on those stocks, you are exposing yourself to a large risk of getting the "nothing" side of "all or nothing".
Diversification means not putting all your eggs in one basket. Diversification means putting various eggs into baskets strewn all over the place so that when predators come into the area they will only get a few of your eggs. Focus means carefully watching over your basket and keeping it from harm. The way to watch a basket in investment is to do your homework first, and keep up to date on events affecting your portfolio.
