Always avoid risk, especially in investments.
The higher the projected return the greater the risk of achieving it.
It is always preferable to have lower capital risk.
Companies always choose to report high and increasing per share profitability because it is normally in their best financial interests.
Companies seeking to please and attract investors usually choose strategic actions permitting them to portray optimum profitability.
Privately owned companies tend to be more conservative, reporting the least permissible taxable profit
All investments intended to generate income for investors should be publicly traded.
If it is new to you, beware!
Investments in privately owned companies are risky.
To be considered:
The balancing of risk and reward is prudent money management.
Once the investor’s principal has been returned, there should be no further fear of capital risk
If there really is no capital risk the return on the investment is likely to be relatively low.
Reporting of high profit levels encourages the market entry of competitors and also discourages careful monitoring of overhead expenses by executives and staff.
Reporting high profit levels attracts investors and also creates expectations for continued superior performance.
There are many non-publicly traded investments which offer high income returns and also provide capital recapture features and have appreciation benefits available.
All good things were once new at an earlier point it time.
Using revenue royalties which include the investor protections and benefits we recommend, results in higher investor income with less risk than alternatives
Arthur Lipper, Chairman
British Far East Holdings Ltd.
+1 858 793 7100
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