“There’s no such thing as a free lunch.” Economist Milton Friedman may have said this, but the phrase’s originally dates back to a 19th century practice in American bars of offering a free lunch to entice the more lucrative drinking customers. The same goes with our investments!
In this episode, Richard and Matt talk about how risk and return are linked. For every increase in return, we must take additional risk. You can’t get a higher return for free. The price is the additional risk.