Risk is often confused with fear, volatility, or bad outcomes. This article takes a different approach. It explains risk as uncertainty combined with consequences, and shows how misunderstanding it leads investors to take the wrong kinds of chances.
Using real estate as a practical framework, the text explores how time horizons, cash flows, leverage, and personal constraints shape investment risk. It explains why some risks are rewarded by the market while others quietly reduce returns, and why forced decisions are more dangerous than price movements.
The writing avoids formulas and complex theory, focusing instead on structure, probability, and judgment. The goal is not to eliminate risk, but to understand it well enough to take it deliberately.
