Wednesday, November 12, 2008

Low Risk High Return ?


Seems like still quite a number of people do not agree that Risk is dealing with something you don't know (read the post about risk here).

So I would like to repeat that yes while Low Risk Low Return and High Return High Risk are TRUE but if you think it that way, you may just settle for "whatever it is, it is !"

For example, you may think you are not a risk taker, therefore you will never get a high return !!

My 'additional' point made to above truth is that, you should still make effort to learn the next risk in your portfolio so that the more you know, the better you can manage that risk until it becomes insignificant compare to its potential return.



6 comments:

Anonymous said...

Absolutely agree. Great comics too.

OoT

http://abebedorespgondufo.blogs.sapo.pt/ said...

I like your blog.
Paulo
portugal

ChampDog said...

Perhaps, low risk, high luck, high return? Possible?

Michael Tsen said...

yes its possible ... high luck.

however, high luck everytimes for the rest of your life, is highly unlikely, still possible thao.

it is IMpossible to have everyone lucky everytime, because by definition, by then, there is equivalent to no luck. :)

ChampDog said...

That's why people believe in feng shui. :) hahaha...

In scientific term, luck = opportunity + preparation.

Michael Tsen said...

oh ... in that case, 'luck' is a 'must' for success :) hee hee hee ....