Why does the boss earn more because he is the one who takes the risk.
Many migrant workers complain about the "exploitation" of their bosses, but they are not willing to take any risks. You don't have to be responsible for the company's loss, but you want to distribute it equally when you make money, how can there be such a good thing in the world?
Suppose there is a project with an investment period of 1 year, there is a 98% probability of returning 10% and a 2% probability of losing the principal.
Many people may think that the risk is high, although there is a high probability of earning 10%, but once it hits 2%, it is a loss!
There are 2 ways to do it. One is to disperse, find out 100 such projects to invest separately, such as dividing 100 yuan into 100 shares, 1 yuan each, of which 98 shares get 10% income and earn 98 yuan, there are 2 losses, a loss of 2 yuan, and the result is 98－2=7.$8.
Depending on luck, the yield varies slightly from year to year, but as long as you are spread out enough and do it for the long term, the effect of luck will be flattened.
The second way is to do in-depth research, find out the situation of the project, make sure it is not one of the 2%, and then focus the money on it.
These are the two things that banks are doing.
To put it bluntly, it is necessary to find things with positive mathematical expectations and stick to them, and qualified entrepreneurs and investors should be comfortable taking reasonable risks.
People who are extremely risk-averse are not suitable for investing and are almost impossible to become rich. List of high-quality authors