It's risk/reward. Whether a VC fund, NYSE, or government security, you can risk more for greater reward. This does not mean, as the article implies, that you should. It depends on the individual and the purpose of the investment. I can probably make a lot more money investing in a riskier company, but I am also more likely to lose some or all of my investment.
If I am considering investment in a fund that expects a 40% annual return, I should remind myself that if it was a sure bet, then enough people would be investing in it to drive the price up and the return down. There are plenty of investors as smart as me, and many of them are willing to do more research than I am.
If I am considering investment in a fund that expects a 40% annual return, I should remind myself that if it was a sure bet, then enough people would be investing in it to drive the price up and the return down. There are plenty of investors as smart as me, and many of them are willing to do more research than I am.