Читать книгу More Straight Talk on Investing - John J. Brennan - Страница 21

Avoiding mistakes (many self-inflicted) and behavioral errors is key to successful investing. One pitfall is failing to understand the risk/reward trade-off.

The single question I've heard most from investors over the years is this one: “What should I invest in if I want to make a lot of money but I don't want to take a lot of risk?” There is no investment that fits that description. I always reply this way: “If you don't want to take risk, put your money in the bank in an insured account. You cannot invest in the markets without taking on risk.”

There is a risk/reward trade-off in every investment choice—from publicly traded stocks and private equity to certificates of deposit and money market funds. If you want to reach for bigger returns, you must accept greater risks. Conversely, if you want to minimize your risk, you must accept lower returns. Think of it in terms of the saying, “There is no free lunch.” You must give up something to get something. What's important is to understand the risk you're taking on so you won't be surprised.