It was Warren Buffet who once said, "I do not look to jump over 7-foot bars: I look around for 1-foot bars that I can step over" The issue of risk and reward are two of the biggest issues of any investor. We want to get as much out of our investment as possible with as little risk as possible. The question is whether there really are any financial investment principles that allow you to get a high return with little risk? And of course they do exist - it might just require a little creative thinking to come up with them.
I remember as a martial arts instructor running a martial art camp I made a certain amount of money by investing my time and involvement into these camps. Then one day, after I started asking myself the right question - such as, "how can I get the most from my investment with the least amount of risk?" It was then that I soon learned that I could license my name and system in order to allow others to take on my risks and yet I could still profit from the business and time I had already worked so hard to invest in. You can do the same with the purchase of a successful franchise. The reason a franchise business is a good investment is because they offer very little risk with a background of previous success.
So, your goal is to consider the history of any strategy you are planning to invest in. What is the typical and or average result? Use that as a foundation for your research and you will be able to maintain a high rate of return while avoiding taking too big a risk.
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