By Michelle Seiler-Tucker, Special for USDR
Li Hejun, the richest man in China just lost $15 billion in the course of one hour as a result of the a stock crash. While the exact cause of the crash responsible for his loss is not yet known, there is talk of market manipulation and the risks associated with investing in emerging markets. Whatever the cause, I know that one way to avoid losing money like this is to diversify, and not just in the type of stocks you own. I am invested in the stock market, real estate, and many different businesses. Even within my different investments, I maintain diversity to protect myself from situations like that which Mr. Hejun just experienced.
Whether you choose to invest in yourself through your business or in the market through an advisor, be sure to trust but verify. You should be able to have complete confidence in either your advisor’s expertise, or in your own knowledge about the workings of your business. After all, the only way to combat uncertainty in your investments is to have a good understanding of your markets and spread out your assets. All routes of investment have great potential for success, but no one investment is worth the risk of losing everything, however lucrative it may seem.