Advantages of Low Net Value Individual Investors

For individual investors, the investment goal should be to maximize long-term returns. In order to achieve this goal, one of the advantages of individual investors is that they can bear greater fluctuations in book prices. Another advantage for Diao silk is that it has (or is easy to obtain) higher investable cash flow relative to investable assets. Therefore, Diaosi should adopt radical investment strategy if she wants to turn over.

For example, many early high-leverage housing purchases through loans have achieved net worth growth of tens of times, which is difficult to achieve by conservative investment strategies. In fact, real estate is one of the easiest areas to make value investment, because its intrinsic value is relatively easy to assess; mortgage loans are also a very safe way to leverage, as long as the cash flow is guaranteed. But I'm afraid it's not a good time to invest in housing.

It's easy to leverage in the stock market, but it's not easy to find a safe, low-cost and high-leverage way. It would be much easier to figure out a strategy that takes both radicalism and security into account if strong cash flows backed it up. Security here refers to a permanent loss of principal that is unlikely to happen, not price security.

These are all theoretical discussions, not encouraging people to adopt radical investment strategies. It's better to be cautious and conservative if you don't have enough investment capacity.