SURPRISE: EACH ONE OF US ARE ACTUALLY A HUMAN HEDGE FUND
What is a hedge fund? They are investment firms that take their capital and invest it in a portfolio of assets.
The assets are allocated for some kind of strategic reason. And the assets are conditioned for both risk and yield (reward).
You are a HUMAN HEDGE FUND, but I wonder if you even realize where you are investing the different asset classes of the portfolio called “your life” and “your business”.
You may not have evaluated adequately the risk and reward you’re getting on different allocations of…..
*TIME – Are you delegating the lower value tasks, and focusing your time on higher value activities? Are you putting in the time required to meet your goals?
*EFFORT – Are you expending needless effort “majoring in minors”? Or are you working hard in the areas that matter most?
*OPPORTUNITY COST – The opportunity cost of any decision is what you GIVE UP as a result of that decision. For example, if you spend a lot of hours SELF managing your own properties (saving PM fees), are the fee savings worth the opportunity cost of gaining your time back to raise more capital and find more deals?
*HUMAN CAPITAL – Are you consistently investing in building your skills? Do you have a strong team or an average team (ie. nothing is more expensive than a cheap accountant)?
*INTELLECTUAL CAPITAL – Are you building your name recognition or brand? Do you have training programs for your employees?
You may be doing one thing that is a HUGE portion of your allocation, and it’s 30% risk with a 10% yield. While something else that you give a very SMALL allocation, has only a 10% risk and a substantial 30% reward.
I would challenge you to consider this and possibly re-evaluate where you are “investing.” You may be able to make just a few adjustments that could bring you substantial results.
Credits to: Arlen Dahlin
you can check his facebook here : https://www.facebook.com/arlendahlin