What role should risk play in every investment decision?
Category:
Buying & Investing
Every investment involves risk. Rather than attempting to eliminate risk entirely, experienced investors seek to understand, price, diversify, and manage it appropriately. Market conditions, tenant stability, financing, lease rollover, deferred maintenance, industry concentration, and economic trends all deserve thoughtful consideration.
The objective is not finding investments without risk.
It’s understanding whether the anticipated return appropriately compensates for the risks being assumed.