Bigger The Risk Bigger The Reward Quotes

Why does loving someone always have to hurt? The risk just seems bigger than the reward.

The result of big risk is bigger reward.

The reward is in the risk. I wanted so badly to believe, but the fear felt as great and overwhelming as the desire. I abruptly stood up from my chair so I could return to my room and feel terribly sorry for myself and eat away too much chocolate in private “Can we try to be wise with each other for a very long time??” -“You mean, can we share our fuckups and see if we can get any wisdom out of them?” “Yeah, that would be nice” They think that fate is playing with them. That we’re all just participants in this romantic reality show that God gets a kick our of watching. But the universe doesn’t decide what’s right or not right. You do Dullness is the spice of live. Which is why we must always use other spices I don’t know what I’m doing. Please don’t laugh at me. If I’m a disaster, please be kind and let me down gently Was it possible my heart was shaking as hard as my hands? I thought about the bigger picture of my life, and about the people I would encounter during my lifetime. How would I ever know when that moment was right, when expectation met anticipation and formed…connection?

Don't make decisions based on whatever problem you're having.You should make choices based on what outcome you want.Decision has to be made with the bigger picture in mind. You've to weigh the risks against the rewards of your decisions.And when the balance begins to tip one way or the other,you just have to find the courage to do it.Risk vs reward & then follow your heart.

It was during the 1970s that statisticians decided it would be a good idea to measure banks’ “productivity” in terms of their risk-taking behavior. The more risk, the bigger their slice of the GDP.14 Hardly any wonder, then, that banks have continually upped their lending, egged on by politicians who have been convinced that the financial sector’s slice is every bit as valuable as the whole manufacturing industry. “If banking had been subtracted from the GDP, rather than added to it,” the Financial Times recently reported, “it is plausible to speculate that the financial crisis would never have happened.”15 The CEO who recklessly hawks mortgages and derivatives to lap up millions in bonuses currently contributes more to the GDP than a school packed with teachers or a factory full of car mechanics. We live in a world where the going rule seems to be that the more vital your occupation (cleaning, nursing, teaching), the lower you rate in the GDP. As the Nobel laureate James Tobin said back in 1984, “We are throwing more and more of our resources, including the cream of our youth, into financial activities remote from the production of goods and services, into activities that generate high private rewards disproportionate to their social productivity.”16

Out of the corner of her eye, Inej saw Jesper rise from his seat, but she waved him off and slipped her fingers into the brass knuckles she kept in her right hip pocket. She gave Rojakke a swift crack across the left cheek. His hand flew up to his face. “Hey,” he said. “I didn’t hurt you none. It was just words.” People were watching now, so she hit him again. Regardless of the Crow Club rules, this took precedence. When Kaz had brought her to the Slat, he’d warned her that he wouldn’t be able to watch out for her, that she’d have to fend for herself, and she had. It would have been easy enough to turn away when they called her names or sidled up to ask for a cuddle, but do that and soon it was a hand up your blouse or a try at you against a wall. So she’d let no insult or innuendo slide. She’d always struck first and struck hard. Sometimes she even cut them up a bit. It was fatiguing, but nothing was sacred to the Kerch except trade, so she’d gone out of her way to make the risk much higher than the reward when it came to disrespecting her. Rojakke touched his fingers to the ugly bruise forming on his cheek, looking surprised and a bit betrayed. “I thought we was friendly,” he protested. The sad part was that they were. Inej liked Rojakke. But right now, he was just a frightened man looking to feel bigger than someone.

Safety truly is an illusion,” I conclude, the rest of my blissful ignorance falling away. He dips his head. “And the most powerful, but once you make peace with it, it’s easier taking bigger risks to seek greater rewards. But that’s no excuse to make a stupid move.

Cares for Something/Someone Outside the Self “It is the capacity to care — to care intensely about something beyond the limited self — that we seem to find our best clue to what mature individuality is.” —The Mind Alive The Overstreets convincingly argue that, for several reasons, the capacity to deeply care for someone or something forms the very core of the mature mind. First, it slays adolescent ego-absorption by shifting an individual’s focus outside the self, and training that focus on something bigger than the self. Second, it requires the “emotional overflow” of well-developed inner resources, particularly the development of courage, as sincerely caring is underrated as a truly frightening endeavor: “Caring — whether for another person, a line of work, a field of knowledge, or a conviction — is, in a sense, the most hazardous of human experiences. The emotionally impoverished person cannot afford it; for it means choosing to be vulnerable. . . . There is, in psychological truth, a certain terror that is part of the experience of deep caring: the terror of letting one’s self go; putting one’s whole capacity to feel and suffer at the disposal of something beyond the self. No one, it seems safe to assume, who has ever deeply and genuinely loved another human being or a chosen vocation or a social cause or a religious faith has ever wholly escaped this terror.” Third, it is the only way to catalyze one’s full potential: “If the risks of caring are great, so are the rewards; for it is one of the basic facts of human life that the ungiven self is the unfulfilled self. Only the individual who builds a strong, sound relationship with his world can himself become strong, sound, and resourceful: ready for what happens; able to be affirmative and creative in his dealings with experience.” Caring is such a key element of human fulfillment, in part because it provides a non-duplicable source of motivation:   “If a person never greatly cares about anything beyond himself, he has little spontaneous reason to get over the hump of inertia and submit himself to the discipline of a working material or a body of knowledge. . . . an individual’s area of caring and the strength of his caring determine the inconveniences he will willingly suffer and the risks he will run.” Finally, the practice of caring for things outside the self — a process in which the arrows of influence and need work both ways — disabuses you of delusional notions of complete autonomy and control (ideals maturity approaches, but can never completely attain, nor would find desirable to attain); it serves as a visceral, humbling reminder of where you remain (wonderfully) dependent. In caring for some person or idea, you come to an understanding of humanity’s interconnectedness, a “sense of how things hang together; not just the thing itself, but the meaning of it.” As the Overstreets conclude, “the capacity to care — to enjoy richly, love deeply, feel strongly, and if need be, suffer intensely — is, in short, the best guarantee any one of us can have against” the complete stagnation of the self.

Ross’s “arbitrage pricing theory” and Rosenberg’s “bionic betas” posited that the returns of any financial security are the result of several systematic factors. Although seemingly stating the obvious, this was a seminal moment in the move toward a more vibrant understanding of markets. The eclectic Rosenberg was even put on the cover of Institutional Investor in May 1978, the bald, mustachioed man depicted as a giant meditating guru with flowers in his hair, worshipped by a gathering of besuited portfolio managers. The headline was “Who Is Barr Rosenberg? And What the Hell Is He Talking About?”8 What he was talking about was how academics were beginning to classify stocks according to not just their industry or their geography, but their financial characteristics. And some of these characteristics might actually prove to deliver better long-term returns than the broader stock market. In 1973, Sanjoy Basu, a finance professor at McMaster University in Ontario, published a paper that indicated that companies with low stock prices relative to their earnings did better than the efficient-markets hypothesis would suggest. Essentially, he showed that the value investing principles espoused by Benjamin Graham in the 1930s—which revolved around buying cheap, out-of-favor stocks trading below their intrinsic worth—was a durable investment factor. By systematically buying all cheap stocks, investors could in theory beat the broader market over time. Then Banz showed the same for small caps, another big moment in the evolution of factor investing. Follow-up studies on smaller stocks in Japan and the UK showed similar results, so in 1986 DFA launched dedicated small-cap funds for those two markets as well. In the early 1990s, finance professors Narasimhan Jegadeesh and Sheridan Titman published a paper indicating that simply surfing market momentum—in practice buying stocks that were already bouncing and selling those that were sliding—could also produce market-beating returns.9 The reasons for these apparent anomalies divide academics. Efficient-markets disciples stipulate that they are the compensation investors receive for taking extra risks. Value stocks, for example, are often found in beaten-up, unpopular, and shunned companies, such as boring industrial conglomerates in the middle of the dotcom bubble. While they can underperform for long stretches, eventually their underlying worth shines through and rewards investors who kept the faith. Small stocks do well largely because small companies are more likely to fail than bigger ones. Behavioral economists, on the other hand, argue that factors tend to be the product of our irrational human biases. For example, just like how we buy pricey lottery tickets for the infinitesimal chance of big wins, investors tend to overpay for fast-growing, glamorous stocks, and unfairly shun duller, steadier ones. Smaller stocks do well because we are illogically drawn to names we know well. The momentum factor, on the other hand, works because investors initially underreact to news but overreact in the long run, or often sell winners too quickly and hang on to bad bets for far longer than is advisable.

Whatever the reason, the existence of some persistent investment factors is today accepted by almost every (if not all) financial economist and investor. In an ingenious bit of marketing, factors are often called “smart beta.” Sharpe himself grew to hate the term, as it implies that all other forms of beta are dumb.10 Most financial academics prefer the term “risk premia,” to more accurately reflect the fact that they think these factors primarily yield an investment premium from taking some kind of risk—even if they cannot always agree what the precise risk is. An important milestone was when Fama and his frequent collaborator Ken French—another Chicago finance professor who would later also join DFA—in 1992 published a paper with the oblique title “The Cross-Section of Expected Stock Returns.”11 It was a bombshell. In what would become known as the three-factor model, Fama and French used data on companies listed on the NYSE, the American Stock Exchange, and the Nasdaq from 1963 to 1990 and showed that both value (the tendency of cheap stocks to outperform expensive ones) and size (the tendency of smaller stocks to outperform bigger ones) were distinct factors from the broader market factor—the beta. Although Fama and French’s paper termed these factors as rewards for taking extra risks, coming from the father of the efficient-markets hypothesis, it was a signal event in the history of financial economics.12 Since then academics have identified a panoply of factors, with varying degrees of durability, strength, and acceptance. Of course, factors do not always work. They can go through long fallow stretches where they underperform the market. Value stocks, for example, suffered a miserable bout of performance in the dotcom bubble, when investors wanted to buy only trendy technology stocks. And to DFA’s chagrin, after small caps enjoyed a robust year in DFA’s first year of existence, they would then undergo a long, painful seven-year period of trailing dramatically behind the S&P 500.13 DFA managed to keep growing, losing very few clients, partly because it had always stressed to them that stretches like this could happen. But it was an uncomfortable period that led to many awkward conversations with clients.

The reality is, when you want something bad enough, and it means enough to you, at some point you have to be willing to reach for the brass ring and not give a fuck about risk anymore. You have to embrace that sometimes the cliché is true: the bigger the risk, the bigger the reward.

In addressing a subcommittee of the National Science Board (it oversees the National Science Foundation) charged with reviewing “transformational” science, he remarked: My colleagues and I have studied approximately 175 research organizations on both sides of the Atlantic, and in many respects the Santa Fe Institute is the ideal type of organization which facilitates creative thinking. And here’s a quote from Wired magazine: Since its founding in 1984, the nonprofit research center has united top minds from diverse fields to study cellular biology, computer networks, and other systems that underlie our lives. The patterns they’ve discovered have illuminated some of the most pressing issues of our time and, along the way, served as the basis for what’s now called the science of complexity. The institute was originally conceived by a small group of distinguished scientists, including several Nobel laureates, most of whom had some association with Los Alamos National Laboratory. They were concerned that the academic landscape had become so dominated by disciplinary stovepiping and specialization that many of the big questions, and especially those that transcend disciplines or were perhaps of a societal nature, were being ignored. The reward system for obtaining an academic position, for gaining promotion or tenure, for securing grants from federal agencies or private foundations, and even for being elected to a national academy, was becoming more and more tied to demonstrating that you were the expert in some tiny corner of some narrow subdiscipline. The freedom to think or speculate about some of the bigger questions and broader issues, to take a risk or be a maverick, was not a luxury many could afford. It was not just “publish or perish,” but increasingly it was also becoming “bring in the big bucks or perish.

The greater the risk, the bigger the reward.

community ownership doesn’t work in large-scale societies where people operate in anonymity. In The Power of Scale, anthropologist John Bodley wrote: “The size of human societies and cultures matters because larger societies will naturally have more concentrated social power. Larger societies will be less democratic than smaller societies, and they will have an unequal distribution of risks and rewards.”9 Right, because the bigger the society is, the less functional shame becomes. When the Berlin Wall came down, jubilant capitalists announced that the essential flaw of communism had been its failure to account for human nature. Well, yes and no. Marx’s fatal error was his failure to appreciate the importance of context. Human nature functions one way in the context of intimate, interdependent societies, but set loose in anonymity, we become a different creature. Neither beast is more nor less human.

Risk isn’t about going headlong into situations where the outcome can’t be predicted. That’s just foolish behaviour. Risk means pushing the envelope when others want to take the safe route. Risk means caring more about potential rewards than possible losses. To separate yourself from the crowd, think through the worst-case scenarios as possibilities. If a worst-case scenario does become a reality, be just as willing to move on to bigger and better things.

He dips his head. “And the most powerful, but once you make peace with it, it’s easier taking bigger risks to seek greater rewards. But that’s no excuse to make a stupid move.” And it’s the truth. In every aspect of life, safety is an illusion. I can lock this house up tight, but a storm could rip the roof from over my head. I could safeguard my heart and never let anyone in, but I would still feel the pain of isolation. I could make all the right moves every single day of my life out of fear, and with the sweep of the right hand, get wiped off the board altogether. Every decision we make in life is a move, our opponent invisible. Whether it be the enemy of illness, or the enemy you sleep with, you don’t get that knowledge until the opponent makes itself known. His logic is that we’re all pawns playing invisible opponents and one wrong move or stupid decision away from revealing our enemy. Simply by inserting myself into this mix of dangerous men, I might have switched up my opponents and lined my life up differently. Up

Big risks come with big rewards,” she pressed. “And even bigger dangers.

One of the most disappointing things about our schools and the way we raise our kids is that we don't spend more time teaching kids to take more risks. Instead, we teach them to play it safe. Be good, get good grades, get a good job, and eventually you can have a good retirement. That's the lesson society endorses. But what if that lesson is totally out of date? What if the idea that getting good grades and then going to a good college and then getting a good job represents an outmoded plan? In fact, most of our schools today are based on a model created over a hundred years ago for an industrial society in a world totally different from the one into which most of us were born. Back then, you went to work, punched a clock, did what you were told, and eventually were handed a gold watch (maybe). There was hierarchy and a well-defined system within which to work. Not anymore. Today, ideas created out of thin air can become billion-dollar enterprises. The people who get ahead are the ones who know how to communicate, how to think outside the box and persuade others. Unfortunately, many of our schools are still preparing our kids for the old system. Sit still. Be quiet. Do what you are told and we will give you good grades. Get good grades, get a good job and lifelong security. I'm not suggesting that kids shouldn't get good grades and go to college. Of course they should. But it seems to me that our schools are creating worker bees at a time when society is rewarding entrepreneurs. We need to raise our children to think bigger and more creatively than we did. So ask yourself right now, "What am I teaching my kids about life's challenges?" Are you raising your children to go for their dreams or simply to avoid failure?

Racetracks close at the end of the day. Once in a great while, a stock market venture of yours might end when a company in which you’ve invested is absorbed by a bigger company and passes out of existence. But most of the time you will be required to call your own endings.

The fact was, the bigger the risks that were present, the larger the rewards that were available

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