Dec 7, 2008

Four Types of Life

Up to now, I thought that there were two kinds of life: risk taker type and risk averse type. Now I got to know there are four.

- High risk - High return
- High risk - Low return
- Low risk - High return
- Low risk - Low return

If I just consider my former dichotomic analysis I would rather choose high risk. I simply believe life is full of new universes worth of being explored no matter the costs. I love challenge and courage is a virtue I want to exercise throughout my life.

But today I thought that my dichotomic view on life was too naive and too romantic about the results of being a risk taker. The worst case would be a high risk-low return life where I would end up losing many things, while the smartest one would be a low risk-high return life where in spite of a secure, and probalby boring process, I would be highly enjoying the results. Another option is a high risk-high return life where I can enjoy both the process and the results. This rationale made me think how I could possibly design a well balanced life of low risk-high returns and high risk-high returns. Eventually it led me to wonder whether there was a strategy for that kind of life. After hours of thinking and rethinking, I reached to the conclusion that well, there should be...

My next assignment is to figure it out.

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