Do investors get compensated for taking high risk? Is there a strong relationship between risk and returns? In this article, I take a look at realized risk as measured by standard deviation and annualized returns across emerging markets.
Warren Buffett says that when thinking of investing in common stocks, think like a part-owner. What does it mean to be a part owner of a business? How does it differ from owning pieces of paper with the intention of flipping them to someone else at a higher price? We answer these questions in this article as well discuss a framework for generating superior investment returns in emerging markets.