Growth And Risk

In economics there is the concept of growth and the concept of risk. Growth is steady increase in the value of the stock; risk is its fluctuation. In investments, people like to maximize growth and minimize risk.

In life, sometimes people do something else. They increase risk in order to get higher. Of course risk will also take them very low. The people who take that route experience great highs and great lows, but over the long run they lose.

Using the concepts from economics, it makes sense to do the opposite. It is to do as much as you can to increase growth while minimizing risk. Some measure of risk is good. It prevents life from becoming boring. However over the long run it is growth that is desirable, and risk that is less so.

Risk is great when you are young. But as you get older what you want is steady growth. So it becomes advisable to encourage growth and, while not necessarily eliminating, at least reducing to manageable levels, the risks that one takes.

A positive feature of risk is that it exposes one to the unexpected. From the unexpected grows the understanding of the world and the wisdom. Wisdom can then be used by self or others to enhance growth. With wisdom the growth increases.

Take the risks to achieve wisdom; use wisdom to enhance growth.