- In bubbles, people may be willing to pay any price for an asset and may prioritize market momentum over value and fair price
- There are several ways to achieve investment profits, including benefiting from a rise in intrinsic value, applying leverage, selling for more than the asset’s worth, and buying something for less than its value
- Risk is an important consideration in investing because it’s a bad thing to be avoided or minimized, it should be taken into account when considering an investment, and it should be assessed when evaluating investment results.
