{"id":9459,"date":"2018-11-05T16:00:57","date_gmt":"2018-11-05T15:00:57","guid":{"rendered":"https:\/\/schweizerfinanzblog.ch\/the-magic-triangle-of-investing\/"},"modified":"2026-07-07T00:00:00","modified_gmt":"2026-07-06T22:00:00","slug":"investing-the-magical-triangle-of-investment","status":"publish","type":"post","link":"https:\/\/schweizerfinanzblog.ch\/en\/investing-the-magical-triangle-of-investment\/","title":{"rendered":"The magic triangle of investing \u2013 or the fine art of compromise"},"content":{"rendered":"\n

Why does one investment deliver an attractive return while another barely beats inflation? The answer lies in the magic triangle of investing \u2013 and in a trade-off that nobody can escape. In this second lesson of our finance guide, you’ll find out which three factors are decisive when you build wealth, how they interact, and which goals you can achieve at the same time \u2013 and which you can’t.<\/strong><\/p>\n\n

< Lesson 1<\/a> | Overview<\/a> | Lesson 3 ><\/a><\/p>\n\n\n

\n\t\t\n\t\t\"Stefan\"Antun\t<\/span>\n\t\t
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\n\t\tBy Stefan Huser<\/a> and Antun Brcina<\/a>\t<\/div>\n\t\t\t
Updated on 2 Comments<\/a>\n\t<\/div>\n\n\n\n
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\n\t\t\tIn a nutshell\t\t<\/p>\n\t<\/div>\n\n\t

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  • The magic triangle of investing shows that return, availability and security cannot all be maximised at the same time.<\/li>\n
  • If you prioritise two of these goals, you inevitably have to compromise on the third \u2013 and that applies to every asset class.<\/li>\n
  • Shares offer return and availability, but little security. A bank account is safe and available, but yields hardly any return. Medium-term notes or fixed-term deposits offer security and a little more return \u2013 but your capital is tied up.<\/li>\n
  • Which combination is right depends on your risk profile \u2013 there is no universally best answer.<\/li>\n<\/ul>\n\t<\/div>\n\t\t\t\n\t<\/div>\n\n