3min chapter

We Study Billionaires - The Investor’s Podcast Network cover image

TIP497: Lessons from Billionaire Howard Marks

We Study Billionaires - The Investor’s Podcast Network

CHAPTER

Riskier Investments Produce Higher Returns

The future is far less certain for a riskier investment. A high-flying growth company that is growing at 50 or 100% per year, the bull case says that there is so much upside it will be significantly larger many years down the road. Mark states that when riskier investments are priced fairly, they should have higher expected returns as well as possibility of low returns and in some cases losses.

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