I’ve been thinking about how I need to take more risk, and more risk specifically related with money.  This is not to say I avoid risk.  I don’t.  Many people who know me think I take too much risk, but in truth I don’t.

I’m relatively young at 32 and am in good health. I have good job that pays well. My savings are more adequate. However, I’ve done very little to try “double” my money.  I’ve tended to subscribe to tried and true.  I invest steadily in solid blue chip companies and index mutual funds - though I’m not a pure index fund investor and dabble at market timing.  I look for real estate opportunities, but have done nothing as of yet.

Today and next two to three year could well be the best time to invest in my lifetime.  Market calamity usually means opportunity.  Right now, we certainly have that - market calamity.  The housing market is IN shambles. Wall Street is confused, scared and bewildered.  The economy as whole is likely to sink into a recession if it hasn’t done so already.

I’m generally not a big risk taker. I don’t believe in get rich schemes. I believe in hard work and steady accumulation of capital.  However, given my age, and where I am financially, I know I can take on more risk.  Losing 20% of net worth is not the end of the world for me. The question is why take on more risk than I have to? There are two fundamental reasons for any person.
1) To have and spend more money - While I’m relatively frugal I can’t say there aren’t things I like to do if I had more money. I’m just not much in to owning stuff.
2) To create something of enduring value - I think most people want to be able to touch other people lives in positive and enduring manner. This might be just through our personal interactions, but it can also be though what do through our public lives in business, politics, or philanthropy.

Both appeal to me, but the latter appeals to me a bit more. I feel for me to create something of enduring value, I’ll need to have much more than I have today. First off, I’m at heart a die hard believer in the good that capitalism can bring even if unintentionally. The business of making money inherently means providing people with good and services that they want. I believe the act of capitalism can create enduring value, but capitalism requires putting money at risk. I’d like to be part of that creation process both on a small scale (angel investing, real estate investing), and as small player on the larger stage (IPOs). Today, I’m pretty far away from having the capital that it would take to do many of the things I think I want to do. But I’m young and can take risks now that can maybe put me in that position in 10, 20 or 30 years.