Higher-return investment strategies have a wider gap between top and bottom managers. A promised 30% return might only be real if your manager is elite. Without rigorous vetting, you could face severe losses instead.
This is the most counterintuitive point that I would want to leave people with. Your instinct might be to chase higher returns, but you should be aware that the higher returning the investment, the greater the difference between the top and bottom performing managers, meaning that there is actually an enormous amount of risk that you might not be aware you're taking. Because if something's promised you 30% returns, you better be extremely convinced this is a top manager that really knows their stuff and you have made sure that you've touched bottom on your diligence. Otherwise it can blow up in your face.
