How Do We Protect Our Investment?

Whenever we buy stocks or shares in our Renting Stocks portfolio, the first thing we do is buy insurance to protect the stock or share in case of a big fall (or even a wipeout) in price.

If you are a landlord and you buy a house and rent it out, the first thing you do is to make sure your new house is insured (in fact the bank will probably make you do it anyway). You want to make sure that if your tenants don’t pay rent, or if they damage the property, or even if they burn it to the ground, you are covered for any losses.

No-one buys a house without insurance, and we apply the same principle to our Renting stocks or shares portfolio.