We are not so brazen as to believe that we can perfectly calibrate valuation; determining risk and return for any investment remains an art not an exact science
Unlike return, however, risk is no more quantifiable at the end of an investment that it was at its beginning. Risk simply cannot be described by a single number. Intuitively we understand that risk varies from investment to investment: a government bond is not as risky as the stock of a high-technology company. But investments do not provide information about their risks the way food packages provide nutritional data.
Groupon looked like a very high valuation, but any investment in a great company at any stage is almost always a good investment.
In any business opportunity, you'd be looking, probably, primarily at the risk and return. Some business can be very risky with a low return; what you want is the lowest risk with the biggest return.
There is no such thing as guaranteed high investment returns. Be wary of anyone who promises that you will receive a high rate of return on your investment with little or no risk.
The Rule of 72 is useful in determining how fast money will grow. Take the annual return from any investment, expressed as a percentage, and divide it into 72. The result is the number of years it will take to double your money.
When you say ROI, do you mean return on investment or risk of inaction.
Our goal is not to produce immediate results. We've been tasked with producing long-term results. That means that there's more risk in any individual thing we take on. But we still aspire to a strong return on investment.
Uncertainty is seen to retard investment independently of considerations of risk or expected return.
Are science and Christianity friends? The answer to that is an emphatic yes, for any true science will be perfectly compatible with the truths we know by God's revelation. But this science is not naturalistic, while modern science usually is.
The ability to calibrate risk doesn't happen rationally.
Many persons entertain a prejudice against mathematical language, arising out of a confusion between the ideas of a mathematical science and an exact science. ...in reality, there is no such thing as an exact science.
When investing, I'm not against risk. If you take no risk you must expect a low return. Just don't let anyone fool you into thinking you can get a high return with low risk.
But a lot of businesses out there don't see the return on investment, they look at it as a liability, and until they can understand that proactive security actually returns, gives them a return on investment, it's still a hard sell for people.
to love is to risk, not being loved in return. to hope is to risk pain. to try is to risk failure. but risk must be taken because the greatest hazard in my life is to risk nothing.
What if criticism is a science as well as an art? Not a pure or exact science, of course, but these phrases belong to a nineteenth-century cosmology which is no longer with us.
The risk of an investment is described by both the probability and the potential amount of loss. The risk of an investment-the probability of an adverse outcome-is partly inherent in its very nature. A dollar spent on biotechnology research is a riskier investment than a dollar used to purchase utility equipment. The former has both a greater probability of loss and a greater percentage of the investment at stake.