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Stocks vs Real Estate: A Comparison of Risks



Investment risk can be defined as the probability or likelihood of occurrence of losses relative to the expected return on any particular investment. Stating simply, it is a measure of the level of uncertainty of achieving the returns as per the expectations of the investor.


I am sure you have read the investment warnings - Past performance is no guarantee of future results or There are no guarantees when it comes to investing.


Let’s take a close look at investing in stocks versus real estate, the four basic risks of investing, how commercial multifamily real estate investments mitigate risk, and why the stock market can be much riskier than real estate.


The key is not to look for investments that are risk-free (that doesn’t exist), but to understand the risks