Why Must every investor take risks when investing?

in #investment6 years ago (edited)

View this answer on Musing.io

The act of investing itself IS taking risks. 

Definition of the word "invest:

"Expend money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property, or by using it to develop a commercial venture. " (Google)

There is no such thing as zero risk in investing. In order to invest, one must expend resources (doesn't need to be money) with the hope that they will eventually able to acquire more resources (or more valuable resources) compared to the expended ones.

The profit from investments come from the risk the investor willing to take to gain it. Investments with higher risk tend to be more profitable compared to investment with low or almost non-existent risk. If the risk from high risk investment doesn't come with high profit of course no one will be willing to take the risk. Investment is still affected by the law of the market.

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