Speed of returns, or SOR is a mostly neglected part of investing by investors, especially institutional investors. However, the truth is anything can be an investment and expanding ones horizons beyond the stock market and real estate, can empower an investor in special ways.
Fast cycle investments are as the name implies, investments that mature a lot quicker than the yearly maturation process of most investments. Some investments are designed to turn around in a few weeks or a month and this speed actually decreases risk to a large extent.
The best investments are often ones you have created yourself out of found circumstances. Situations arise and exploiting opportunities naturally can lead to much bigger and quicker returns. But in all this optimism, one can be forgiven for thinking this style of investment can lead to losses.
The point of investing is a return. The logical process is to consider first and foremost the risk factor of any particular investment. To really get involved in safe yet high return investments, you must take responsibility for the investment and to a large extent be in control of the value of the investment. Knowing how to do this can lead to very superior returns with very little risk indeed.
One of the quickest ways to apply control to an investment is to invest without losing control of the value of the investment. Take for example how banks invest. When they offer you a loan for a home purchase, to a bank that is an investment. The way they shore up their risk is by making sure they get full control of the collateral, the house itself, while at the same time making sure you yourself deposit a good deposit, meaning any losses due to a bad investment are taken by you and not them. This type of collateral investment can be replicated by asny investor at any level of seed capital.