Asked by MikeBusiness 👔

Would you invest in a company that is the most volatile? And why?

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Husain Mukadam

Make Learning Fun Again! MSc | BSc | 4yrs+ exp. | DBS Certified✔️

It depends on how much risk you're able to take. Sometimes volatile means more activity, & greater chance of increased rewards (but also increased risks!)

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Christine Harris

I’m a recent Graduate of BSc Economics and Business with four years experience tutoring GCSE/ iGCSE Business Studies.

It largely depends on your preference and expectations. Volatility in any market is inevitable. It’s more about what level of volatility you can cope with and your expectation on returns. If your portfolio drops by 50% or so in a bear market can you cope with that? You could avoid this by not investing at all. Equally some investors actually use volatility of a market to their advantage. Personally, I’d seek advice and would do the following: 1. Undersand more about the market I am investing in, some are more volatile then others 2. Set expectations for returns, do you want to make a quick buck or are you happy with a long term ROI 3. Consult someone already trading in the space, they can offer really good advice for starting out

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