Risk and return go hand in hand from "summary" of Insights on Morgan Housel’s The Psychology of Money by Swift Reads
When it comes to investing, one of the fundamental principles that everyone should understand is that risk and return are closely intertwined. This means that in order to potentially earn higher returns, one must be willing to take on a higher level of risk. This relationship is not always obvious to beginners, who may be lured by the promise of high returns without fully considering the risks involved. Investing in the stock market is a prime example of how risk and return are connected. Stocks have historically offered higher returns than other asset classes like bonds or cash, but they also come with a higher level of risk. Stock prices can be volatile and unpredictable, meaning that investors may experience significant losses in the short term. However, over the long term, stocks have outperforme...
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