Risk Assessment in Investing

In any form of investing there is going to be a risk.  For many investments, the higher the risk, the higher the rate of return.  So when considering the best investment vehicle for your money, one of the first questions you need to ask yourself is, “how much of a risk taker am I?”

In other words, how much of your investment/money are you willing to lose?  Because there always is that possibility when you take your money/cash, and turn it into something else to try and make that money grow, you could lose money.

There are no guarantees with investments.

However, you can limit your risks, and reduce the odds of losing money.  And for many “first-time”, or “risk aversion” investors, this is a way to make investments, see a rate of return that is higher than just parking your money in a bank and savings account, and not constantly worrying if you are going to lose your investment.

One way to do this is to invest in solid companies with proven track records of success.  Investing in what are called “blue-chip” stocks.  These are companies that are established, and have a market capitalization usually in the billions.

To some investors, these stocks are a boring investment, dull, no excitement or volatility, just the same old day in and day out returns.  So for someone just entering the investment arena, or does not tolerate risk well, these are a good way to dip our toes into the waters of investing.

While investing in something as volatile as say Bitcoin, or other cryptocurrency, may not be for the new investor or faint of heart.

So what are the benefits of such stocks as investments:

*  Stability

*  Do not move much in price

*  Can pay dividends

*  Strong cash flows and bottom lines

Everything a nervous investor needs, minus having their hands held.

The next question one may ask is, “what companies meet this criteria” and should I invest in?

There are plenty of blue chip companies out there to invest in, and finding them is not very hard, a simple Internet search or speaking to an investment broker can find you hundreds of sound investment opportunities.

If you are considering this type of investment, and want to still stay in the “tech” side of things, and are looking for potential growth, while limiting your risk, many Internet firms or companies can offer this type of investment opportunity, while making your investment portfolio look and seem trendy.

According to this new infographic from Loanable, “Internet Giants by The Second”, each of these companies, minus Snapchat, are doing extremely well and are very profitable, and still offer future potential for growth and earnings.

Two of these companies, Apple and Amazon, have been valued at nearly $1,000,000,000,000 (1 trillion USD).

As of this writing Apple stock was trading at $204.47 and Amazon’s stock was trading at $1,712.43.

While a huge difference in prices, it does show depending on how much you have to invest, the number of shares you may be able to afford to purchase.

Stock prices change, even on a daily basis, and are also subject to many factors that influence their pricing, however, as a whole, these Internet giants do present themselves as a stable and profitable investment.

As with any investments, managing your tolerance for risk, and also being in the game for the long haul is important.  Investments take time, time and patience.