My dad told me that you have to take risks if you want the reward. I’m reasonably certain he was not referring to risks where there is a chance of dying. I don’t see how going sky diving and risking my life would result in any rewards other then my mom slapping my on the back of my head and telling me I’m an idiot.
(I kid, my mom would never slap me. Although she did try to spank me with a wooden spoon but I was smarter then her – I covered my backside with a book to deflect the damage of her spoon. She never noticed … or she was so amazed by my resourcefulness that she ignorned the book).
Anyway, I’m pretty sure my Dad was trying to tell me that I had to risk growing up, getting a real job, and moving out of the house if I want the rewards that come with being a grown-up. Mainly, a later curfew. But since I ended up in finance, I realized that Dad’s brilliance applied to the world of investments. And quickly learned that the riskier the investment, the greater the reward.
Apparently I am not the only person to come to this conclusion and I would like to draw your attention to this graph provided to us by the folks at the Australian Security Exchange.
Yep, makes sense. Cash is low risk therefore has a low return. Equities? Slightly more risky, greater potential for returns. Drug dealing? Really risky. But potentially big returns … Wait. Drug dealing? Seriously, someone included drug dealing? It doesn’t even belong in this graph. Drug dealing is an activity not an asset class. Weed is an asset. Weed dealers are professionals.
A more appropriate graph would look like this:
I guess the conclusion to all of this is that my choosen career path is never going to be as lucrative as drug dealing.