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How Do You Do Risk Right?

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How Do You Do Risk Right?

Chris Wong
Sep 18, 2021
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How Do You Do Risk Right?

chr.iswong.com
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LOL

The only way you can get compounding returns is with equity.
The only way you have equity is with risk.
Otherwise, you’re just an employee.
If you're not risking, you're working on someone else's dream.

Obviously, this doesn’t mean taking every risk out there.  Like, don’t take out a loan and buy Gamestop.

The adage that it takes money to make money is true, but that’s not the only way.  There are other forms of capital besides money.  Sweat equity, time, your connections and your reputation, intellectual property, these are all assets that you have that you can risk.  

Everyone has some form of capital that they can risk, but it’s rare for people to risk their capital.  As Louie says, this is the limiting factor.  But you need to be deliberate.  What do you want to risk or what can you risk that others can not?

Know what you can offer, and also know the downsides.  If there’s way more upside than downside, take the risk.

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How Do You Do Risk Right?

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