There are many myths and facts about investing. Some pseudo facts are that, high return investments are risky and low risk investments are safe. The truth is, there isnt any exact curve thatll give risks as a function of return. Low return investments can be very risky too when fraud happens, for example.
However, the pseudo fact that risk correlates with return have some truth in it. You need to understand what causes it.
Money doesnt make money. People make money. Someone else will have to work on that money so the money can produce more money. Lets call those people workers. Workers here include CEOs, Entrepreneurs, all the way to blue collar workers. Those workers organize various resources, including your money and themselves to maximize their yield.
How much each worker gets depend on supply and demand. Currently, due to centuries of prosecution and genocide, people that are risk taking enough to be entrepreneurs, or love to learn enough to be CEOs are under represented in the gene pool.
The market values the rare. So entrepreneurs and CEOs tend to get paid way higher salary than blue collar workers, which are often investors. The commies,...
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