Start with the obvious. You invest to earn a return on your money. And you want your investment to grow faster than the rate of inflation in order to protect its real value. You expect to earn an even higher return by taking bigger risks versus smaller risks. And you measure total return by the income received from the investment plus the change of the value of the investment—not by the numbers shown on corporate books, which are too easy for aggressive accounting departments to manipulate (as numerous accounting scandals have demonstrated).…
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