What Rich People Know But You Don't
3. The Foundation for All Returns is Risk
If you want to be in the investment field, you need to know the vitality of taking risks, and should be prepared to get hold of it as well. The higher the risk, the greater is the potential for returns or losses. Whenever someone tells you about outsized returns, always ask about the outsized risk. Remember, the investments which are risk free are bound to generate low returns. But if you want a higher return, you need to be ready to invest in stocks and bonds which will vary in terms of safety, like bonds and domestic or foreign stock markets.
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