Risk

All economic activity is based upon an uncertain future. It is therefore bound up with risk. It is essentially speculation.

Socialism, p. 181

There is no such thing as a safe investment. If capitalists were to behave in the way the risk fable describes and were to strive after what they consider to be the safest investment, their conduct would render this line of investment unsafe and they would certainly lose their input. For the capitalist there is no means of evading the law of the market that makes it imperative for the investor to comply with the wishes of the consumers and to produce all that can be produced under the given state of capital supply, technological knowledge, and the valuations of the consumers.

Human Action, p. 806; p. 810

There is no such thing as independence of the vicissitudes of the market.

Human Action, p. 806; p. 810

The fact that a capitalist as a rule does not concentrate his investments, both in common stock and in loans, in one enterprise or one branch of business, but prefers to spread out his funds among various classes of investment, does not suggest that he wants to reduce his “gambling risk.” He wants to improve his chances of earning profits.

Human Action, p. 806; p. 810

Estimates of future volume of production, future sales, future costs, or future profits or losses are not facts, but speculative anticipations. There are no facts about future profits.

Human Action, p. 812; p. 816