Business and Personal Finance
Investments and the InternetJanuary 27, 2011
Recently, in our Financial Management class, we’ve been discussing about investments – how to invest, where to invest, and how to manage investments. We also tackled about the importance of diversification of businesses, which is one great way of reducing the risk of losses. Diversification is simply investing in two or more industries which are negatively correlated1. In simplest terms, it is putting your money in many baskets.
One of the investments that I’ve been eyeing for the longest time is real estate. I have dreamt of building an apartment building or perhaps buy a condo unit or a house as an investment. I’d have them rented out and then there’s a steady flow of income. I had this idea since 2 or 3 years ago while working in Cebu. I have experienced how hard it was to look for a place to live in. Thank God for internet, house hunting is now a whole lot easier and faster. I stumbled upon AyosDito, which literally translates to “It’s okay here.” True to its name, the site was really a-okay -– super easy to navigate. Just type in “apartment for rent” in the search box, choose the location and there you go! Ha, look at that!
Then I figured, if and when I have enough funds to finally buy a pad, a house or an apartment, I’d just post it in ayosdito.ph. Nice noh? Ayos nga Dito sa ayosdito.ph! :DIn
1Note: For diversification to effectively reduce risk of losses, the businesses you put your money in should be negatively correlated, i.e., if one industry does well with a boost in economy, the other business should do well during a recession. To illustrate, investment in both the automotive industry and debt collection business is said to be a diversified business portfolio.