From facing bankruptcy more than once to being the current president of one of the most powerful countries in the world- business tycoon, billionaire Donald Trump has a lot to teach the world. In this blog, we will discuss the financial/investment lessons he could possibly impart to us through his life and his good/bad decisions:
Diversification is Important
Following the success of Trump Plaza Hotel and Casino in Atlantic City, Trump invested in the other casinos in the same area with the intention of multiplying his profits. The result- profits plummeted as his own business was competing with itself.
This teaches us the importance of having a diverse investment portfolio. As laymen, we can invest in multiple FDs, mutual funds and gold to maintain diversity.
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Taking Calculated Risks
Trump Steak and Trump University bear testament to the fact that risks when taken should always be calculated.
When you are considering making an investment, however minor it may be, you should always be sure to do thorough research on the same. This will help in assessing all the ups and downs the investment has.
Having Practical Financial Goals
Having practical financial goals helps in understanding our limitations better. This leads to better short and long term planning.
To understand this better, here’s an example- An investment of $1 million made 22 years ago by Trump in a property in Wall Street is now more than $500 million in value. The Trump Tower (NY) and the Trump Hotel in Vegas are examples of smart planning.
Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms.