High Risk High Return

The logic of HRHR is obvious. But is it?

When people hear the term, they either feel adventurous or adverse to risk.

But we often tend to overlook risk itself. Should it be generalized?

I think it is important to disect risk into two types. Calculated risk and stupid risk.

Calculated risk is an investment. Stupid risk is a speculation. Calculated risk is the lesser risk among the two, even though it may still be regarded as high risk when compared to low risk.

So, the next time you come across HRHR, think deeper. What kind of high risk are we talking about.