You probably have heard the advertisement for an investment company that says, “the greatest risk is not taking one”. Although this is just a sales pitch, it is very much true. Here we talk about a calculated risk, which is much different than the risk of gambling.In an ever faster changing market, many leaders have to make decisions with less information because, by the time they will have all the information to make their decision, the market has already changed. The less information one has to make a decision, the more risk one will have to take. The more risk taken, the greater the rewardor the penalty. Thus, if you cannot afford to lose your investment, it is wise to take less risk, because the steady growth will ensure your financial success.
It seems that all successful people like and do things that involve risk. But they do not like the risk itself, and they try to reduce it, if they can.