Friends That Invest

Risky Business: Risks in Investing & Your Risk Profile

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Sep 16, 2020
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INSIGHT

Risk and Reward

  • Every investment carries inherent risk, but not all result in losses.
  • Higher risk offers greater profit potential, but also bigger losses, while lower risk offers less profit, but more stability.
INSIGHT

Women and Risk

  • Women are often perceived as more risk-averse, potentially due to historical financial limitations.
  • However, studies suggest women take appropriate risks and may outperform men when empowered with investment knowledge.
ADVICE

Understanding Investment Risks

  • Understand the four main investment risks: business, volatility, liquidity, and concentration.
  • Familiarize yourself with these to better prepare and make informed decisions.
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