Whether in investing or life, we like to pretend that risk comes with a choice. And it does, kind of. But it’s not a choice of whether, it’s a choice of type.
Brother David elaborates:
If we choose the “risk free” option, it just means we’re shifting from one risk to another. A money market fund has near-zero risk of loss, but it carries with it the risk of near-zero gains as well. A career spent in a risk free job carries the risk of boredom. A risk-free social life carries the risk of endless what-ifs.
Dear Honeybees, whatever we choose today, it will be a risk.
Let’s choose the risk that’s worth taking.