When it comes to investing, index funds and dividend stocks may already be the foundation of your investment portfolio. However, you may consider getting a little exposure to more aggressive investment options when youâ€™re young and have several decades before retirement.
A successful investment can produce more gains that years of traditional investing. However, you can easily lose a lot of moolah if the investment fails (which is more likely than large-cap stocks).Â
This A Beginnerâ€™s Guide to High-Risk, High-Reward Investing review recommends a book that can make investing in alternative assets a little bit easier and less risky.
Note: I received a complimentary copy of A Beginnerâ€™s Guide to High-Risk, High-Reward by Robert Ross to review. I receive no compensation for this review and all opinions are my own.
What is High-Risk, High-Reward Investing?
High-Risk, High-Reward Investing is written by Robert Ross, founder of TikStocks. Itâ€™s published by Adams Media, a division of Simon and Schuster, and is 250 pages.
This book can be a good fit for just about any investor thatâ€™s looking to dabble in these assets:
- NFTs (Non-fungible tokens)
- SPACs (Special Purpose Acquisition Company)
- Thematic ETFs
- REITs (Real Estate Investment Trusts)
- Day trading
- Shorting stocks
- Fine Art
There are approximately 30 investment topics to read about.
You probably wonâ€™t have the interest (or budget) to invest in every idea (I donâ€™t). But you may still enjoy reading about investment strategies that you wonâ€™t be investing in (I did).
The book is easy to read and reminds me of the â€œDummies Guide to â€¦â€ books to get a high-level overview of topics youâ€™re starting to learn about.
This book also clearly lays out the investment risks for each idea and is anything but a â€œget rich quickâ€ product. If nothing else, it will help you avoid prematurely investing in ideas because you have the fear of missing out (FOMO).
For example, you may decide not to invest in Bitcoin, Ethereum, meme stocks like AMC, etc.
About Robert Ross
I wasnâ€™t familiar with Robert Ross before reading this book. However, Iâ€™m impressed by his expertise and writing style.
Robert also helms TikStocks which provides investing insights through Twitter, Instagram, YouTube, and TikTok.
He has experience as an investment analyst with the Mauldin Economics investment research firm. He isnâ€™t just a social media influencer looking to get rich by scamming naÃ¯ve investors.
How It Works
Each investment topic dives into these details:
- Overview: Introduction to the investment idea and some basic investment ideas.
- Case Study: Real-life examples that can help you learn from a well-known investorâ€™s success or mistakes.
- Investment Strategy: A how-to guide to identifying potential investments and avoiding unnecessary risk. Each section also includes basic guidelines when you may decide to sell to realize profits or cut your losses.
These guidelines will help you get started investing but you will still need to conduct your own research and clarify your investment goals.
However, you can have an easier time understanding how a particular investment idea works so you can make money.
High-Risk, High-Reward Investing is available on Kindle, paperback, or audiobook.
Who Should Read High-Risk, High-Rewards Investing?
This book is best for investors in their 40s or younger that want to invest in something besides traditional investments like individual stocks, bonds, or index funds.
Even experienced investors with a sizable stock portfolio or a 401k should consider this book.
I like how there are many examples that are easy to relate to and can make it easier to spot money-making ideas.
Who Should Avoid This Book?
Consider other investing newsletters if you want to buy individual stocks.
You should also avoid this book if you have a low risk tolerance and want to avoid volatile assets. Not every idea is super volatile, such as REITs and thematic ETFs.
However, the majority of this book is non-traditional ideas that require more attention than a run-of-the-mill index fund or blue-chip dividend stock.
Pros and Cons
Here are some of the advantages and disadvantages of this book.
- Easy to read and get a basic understanding
- Covers many investment ideas
- Can benefit new and experienced investors
- Requires aggressive risk tolerance
- Most ideas have a short-term investment horizon
- Some topics might be brief fads
A Beginnerâ€™s Guide to High-Risk, High-Reward Investing can provide a firm grasp on alternative investment ideas.
If youâ€™re curious about expanding your investment portfolio, the case studies and investment strategy pointers can help you decide if itâ€™s worth investing or focusing on your current strategy.
Josh founded Money Buffalo in 2015 to help people get out of debt and make smart financial decisions. He is currently a full-time personal finance writer with work featured in Forbes Advisor, Fox Business, and Credible.