Eat Well, Sleep Well

AAA

DEFINITION of 'Eat Well, Sleep Well'

An adage that, referring to the risk/return trade-off, says that the type of security an investor chooses depends on whether he or she wants to eat well or sleep well.

INVESTOPEDIA EXPLAINS 'Eat Well, Sleep Well'

Investing in high-risk, high-reward securities will offer you the potential to eat well, but the risky nature of these securities might prevent you from sleeping at night. By contrast, investing safely means that you will sleep well, but the low rate of return may keep you from eating well.

RELATED TERMS
  1. Risk Lover

    An investor who is willing to take on additional risk for an ...
  2. Risk Neutral

    Indifference to risk. The risk-neutral investor would be in the ...
  3. Risk-Return Tradeoff

    The principle that potential return rises with an increase in ...
  4. Risk Tolerance

    The degree of variability in investment returns that an individual ...
  5. Casino Finance

    A slang term for an investment strategy that is considered extremely ...
  6. Bank Investment Contract - BIC

    A security or portfolio of securities that offers a guaranteed ...
Related Articles
  1. thinkstock|itock
    Investing Basics

    Determining Risk And The Risk Pyramid

  2. Options & Futures

    Basic Investment Objectives

  3. Mutual Funds & ETFs

    What does a mutual fund's beta coefficient ...

  4. Mutual Funds & ETFs

    How do I judge a mutual fund's performance?

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center