The fastest way to lose money is investing in something you do not understand.
One of the biggest mistakes people make after a business sale or real estate exit is chasing the biggest projected return.
That can lead to investments they do not fully understand.
A better approach is to stay with what you know.
If you understand an asset, you can ask better questions.
You can spot risks.
You can make decisions with confidence.
As Warren Buffett has said, he does not invest in assets or businesses he does not understand.
You do not have to chase every opportunity.
You only need the right opportunities for your goals and your next season of life.
What is one investment rule you never break?