MMP106: Investment Masterclass Part 2 – Risk & Return

We continue our investment masterclass and this week we’ll be looking at risk and return. We covered this last way back in session 16 but I think it needs to be revisited in the particular context of risk when investing. So stay tuned, because your investing education continues shortly…

 

Introduction

Risk is an unavoidable part of investing. The two go together like, well, two things which are meant to go together. Like Andy Murray and Kim Sears, perhaps. It isn’t a very pleasant word though, RISK. It’s a horrible four letter word that most people would like to avoid if at all possible, but it isn’t possible, so you might as well learn to work with it.

And that’s the point. Risk is something to be harnessed. It is to be understood and then set free to do its thing, and in doing so your returns should be more predictable and rewarding. With risk comes reward, as sure as night follows day, if you get it right.