Risky Investment?

One of the most popular things you can do on social media or, indeed, media of any kind is to offer investment advice. Though, to be sure, it is more the kind of advice that says 'Buy this to double your money in days' sort of advice that really attracts eyeballs and not the parental sort of thing about how to be careful while investing.

But, then, Tiru lived in times when being parental was the in-thing. And, so...

Aakkam karudhi mudhal izhakkum seyvinai ookkaar arivudaiyaar - Tirukkural

The wise do not encourage risking your entire principal in the hope of high returns - Loose Translation.

You see, Tiru was a with-it sort, who had advice to offer on all facets of life and not merely about what people call spirituality. One does not suppose that there were stock-markets in his time, so he is probably talking of investments as in real on-the-ground investments like shops, trade goods, land etc.

The thing, though, is that it appears that, even in his times, there have been people offering stupendous returns and decamping with your money. So, here he goes warning you against Ponski schemes, telling you to avoid risking all your principal because someone is holding out a carrot of huge returns.

Actually, come to think of it, it need not necessarily be a fraudulent offer. There can be legit high risk high return schemes - like, say, participating in shipping goods to another country in his times with the attendant risk of losing the entire ship to a storm. So, what Tiru has to say is that even if you risk a bit of your funds for high returns you should not get so carried away that you risk your entire principal on it.

Who'd have thought that this antediluvian chap could give you sane advice on managing risk in your portfolio of investments? But, then, that's Tiru for you!