3 High-Risk, High-Reward Stocks for Your Watch List
The new year is here, and it's time for Foolish investors to re-evaluate their risk tolerances and update their watch lists for 2020. But how to define risk? I like renowned investor Charlie Munger's view: "Using volatility as a measure of risk is nuts. Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return."
Today I'd like to examine Zillow Group (NASDAQ: ZG), Avita Medical (NASDAQ: RCEL), and Baidu (NASDAQ: BIDU). These three companies face risks ranging from business changes to new products to macro concerns. But I think the risk is more than balanced out by promising opportunities.
High-risk, high-reward stocks aren't right for everyone, but keeping some on your watch list means you may spot opportunity when the business is no longer as risky and a stock begins to take off.
Source Fool.com
