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Investment

The American method of high-risk, potentially high-reward investments has fueled innovation from New England whaling ventures to Silicon Valley start-ups such as Apple, Intel, Cisco, and Google.

Venture capital (VC) is largely an American invention. It is a “hits” business where exceptional payoffs from a few investments in a large portfolio of startup companies compensate for the vast majority that yield mediocre returns or simply fail.
Just imagine that you have a chance to buy for $25 a stock whose potential earnings seem to you to justify a price of $30. Should you buy? It appears irrational not to. But wait.

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