Investment Risk-Reward Debate
The cluster centers on debates about whether high rewards for investors, especially venture capitalists, are justified by the risks they take, often critiquing the use of other people's money and concepts like privatized profits with socialized risks.
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They're not doing nothing; they're risking their money. Risk is hard to get right every time.
Risking other people's money now counts as risking everything?
Because it’s risky? Surely the same applies with respect to investing in a company, no?
the upside has to justify the risk or it isn't a good investment.
Spread what risk? They are already making money of you. The risk they take is really small compared to what kind of money they are making...
What's so great about risk that it should be rewarded ?
The risks should match the rewards.
No such thing... better the return, higher the risk. Fact of life.
Investors would take that risk?
While this sounds good in theory, this encourages high-risk investments, that either pay-off enormously or lose everything.