by Frederick Mann
(Excerpt from WealthBooster Magazine -- Issue #55 -- December 5, 2001)
Have you considered the possibility that much of the "news" you're bombarded with every day by TV, newspaper, radio, Internet, etc. is "salted" with large doses of lies?
By "best news" I refer to higher-quality news. News that exposes the lies of big-government and big-business. News that tells truths available only in a few places.
The good news is that great news is now available to you every day at BuildFreedom.
From my archives:
"Emotionally the X episode was painful for me -- I trusted the guy, defended him and referred to his "integrity" on several occasions. I don't like admitting that I was so totally taken in by a con artist, but that's the way it looks at present. I sincerely hope that A's attempts to track him down pay off and that he gets what he deserves -- his karma must surely be badly dented right now. I'm over it -- you can take a loss, but you don't have to be a loser.Financially I owe X a debt of gratitude for the learning he has brought me. I thought that my level of diversification was good enough to ensure that no single loss would be a problem, but I was fooling myself because even though I had money in more than 20 programs, the balance of my portfolio was out of whack. I was overweight in his offerings because I heeded those false words "capital guaranteed" and treated them as "safe." I have taken this lesson to heart and decided that I am still overweight in some "trusty" programs, so I have immediately set about redistributing my capital to even the spread of risk. I will take a drop in monthly returns but the increased protection for my seed capital will be worth it. At least I was diversified enough so that X did not wipe me out, he simply set my program back by several weeks.
The lesson I urge everyone to think about: Is your capital spread well enough over enough investments such that you can keep going if a string of them fall over now? My target is to be able to grin and bear it even if such favorites as Crystal Capstone, OSOpps, and Income Ventures are shut down simultaneously -- and that means some serious redistribution..."
Considering a worst-case scenario from time to time may also be worthwhile. What if alternative currencies such as e-gold, OSGold, and/or Evocash bite the dust?
In distributing your capital, you should also consider the currencies used by various programs.
[DTF Note: The bigger issue is that all of his "investments" were scams, so he wasn't really diversified, and wasn't even "investing" - actually just unwittingly gambling in dubious "programs".
Actual diversification requires allocating your resources to different asset-classes/sectors, and multiple independent things/investments within each type, such as precious-metals (gold/silver/etc. - real money for savings/store of value), land/real-estate (farming/housing/industrial/commercial/etc.), viable businesses (mining/processing/production/distribution/services/etc.), any number of (non-scam) investments.]
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