Reinvest Wisely So Your Family Will Love You: Enigmatic Fine Art Returns, Messi & Sports Financing
Pirates of Finance
00:00
The Importance of Diversifying Risk
The argument I always hear that I hate is like, you should be paid for taking a risk over the risk free rate. What Chris brought up, right, right, what Chris brought up is no, it's actually like a non diversifiable risk. And so this is an example where you have producers, manufacturers, real players are able to cross their risk and then by doing so, there should be no risk premium to that because they're both diversifying their insured risks. That lowers cost of capital or allows them to create a more profitable business.
Transcript
Play full episode