Discussing How to Recover from a Bad Investment Decision with Rani Jarkas

Investing presents an attractive opportunity for people looking to grow their wealth or achieve other financial goals. However, it is not an exact science and anyone can make a bad investment. If an asset fails to make you any money, or worse still, it makes you a loss, it is fair to call it a bad investment. There are a few things you can do to help you recover from one, which we explore below:


  1. Don’t take it personally; the idea failed, not you

Even the most seasoned experts make bad investments sometimes. However, they don’t let these losses stop them from investing. They simply learn from it and move on. You should do the same.


  1. Understand the sunk costs and opportunity cost

Sunk cost is the irrecoverable loss made from a bad investment. The downside is that it might actually cause bigger losses. Opportunity cost, on the other hand, is what you miss out on because you chose a specific action. You might have avoided a larger loss if you had spread out your capital amongst various investment vehicles. Understanding the sunk cost and opportunity cost of each investment you make will help you recover from bad investments much quicker.


  1. Seek legal redress

In some cases, you may be able to seek legal redress for a bad investment. Of course, this only applies if you lost money because your fund manager acted in ways that violated the terms of agreement. Ensure you have proper documentation to back up your claim.


  1. Do your due diligence

Oftentimes, bad investments are the result of making uninformed choices. To recover, always do your due diligence before making any investment decisions. You may also consult a trusted financial advisor to help you understand investment concepts that may be a little complex.


Cedrus Investments, led by Rani Jarkas is equipped with high standards and quality business systems. At Cedrus Investments, Rani Jarkas with proven and relevant Financial Planning experience, recommends only approved and high-quality services and products that are fully secure and backed.