More Risks Equals More Returns

18/10/2021 6 min Temporada 1 Episodio 40

Listen "More Risks Equals More Returns"

Episode Synopsis

More risk equals more returns. This is another piece of common portfolio wisdom that we often hear from people. But is it true?
I’m not even sure it’s a half-truth, to be honest with you.
It’s really about taking the right risk because oftentimes more risk equals more losses, not necessarily more return.
Truthfully, the key to long-term investing is to avoid big losses. If you lose 30%, you have to make 43% to get back.
If you only lost 20%, you would be ahead with the lower return.
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