Having to make a choice of which investment opportunities are right for you is difficult. Each investor, yourself included, has their own investing criteria and process they will follow when choosing investments. For myself, I follow a three “r” measurement, which carefully considers the investment’s associated risk, region, and reward.
Carefully considering the risk associated with an investment is not a new strategy for investing. However, making a proper assessment of your tolerance for risk is very important. It is much more than your personal feeling about an opportunity. It factors-in your investment timeline and investing goals to give you a true picture of your ability to handle risk. Doing so can identify opportunities to invest that have a higher rate of return, and may have been overlooked by a timid investor’s strategy.
The economic growth in regions undeniably affects the performance of investments in that area. At the moment, the Asian region is demonstrating prosperity and is providing profitable options for investors. An example of this is container shipping investments from Davenport Laroche. The company operates out of Hong Kong, a shipping mecca that services a great number of the world’s container shipping lines.
Clearly, the rate of return is of primary interest to every investor. It is paramount in achieving financial goals. Savvy investors know that identifying investments that pay consistent returns can be used to supplement income or reinvest to build wealth more quickly.
It is understandable that investors will have additional factors they would like to consider when choosing investments to add to their investing portfolio. The three “r” measurement – Risk, Region, and Return – I have shared above is most valuable to those investment seekers who feel overwhelmed by the number of options they have encountered, and need help making a “short list” of investments to pursue.