Taking a Fundamental Look at Opportunities - They May Be Right In Front of You!!

I woke up this morning with a few random thoughts. I had some wild dreams in the middle of the night, but when I woke up, I gained this sort of flurry of ideas about a potential investment opportunity.

If you know me, then you know that I'm always on the prowl for an opportunity. Like a bengal tiger lurking in the jungle, I'm just waiting for a stick to snap in half and alert me to the location of my prey.

Sometimes opportunities are all over the place and I can't even pull together enough capital to invest in all of them. I guess that's kind of a good problem to have.

But other times, opportunities are few and far between. I've heard from many friends that they have no idea what to do with their money and where to invest it.

Sometimes the opportunities are staring you right in the face. They are literally right in front of your eyes, but you may be to afraid to take the leap on them.

“Breathe. Take care. Stand still for a minute. What you are looking for might just be looking for you too.” Cleo Wade

Sometimes you need to take a step back and look at it from the macro perspective - ask the most fundamental of questions.

I've been researching this idea now for the past few hours and it looks good to me. I'm excited for what it might bring, but I'm also a little afraid that it may not work out.

So what do I do?

I take a step back and ask the most fundamental of questions:

1. If I invest X then what will the Y income be?
2. Is Y bigger than X?
3. If yes, is it better than a return I might get elsewhere that's already available to me?
4. What if it doesn't work? Then Z is my potential risk of capital allocated..

These are the fundamental questions from a macro view. It's a basic way of determining whether an investment will pay off and the potential risks associated with it.

It's highly simplistic, but I think you get the point. The point is to garner the basic knowledge you need to make the investment work, from there, it's all about spreadsheets and testing the investment constantly to see if it continues to be profitable!