https://www.fool.com/investing/general/2015/08/20/what-is-risk-capital.aspx says “It refers to funds that are invested in high-risk, high-reward investments…. Risk capital is money that, if lost completely, would not have an overly harmful impact on you financially. It’s money you can afford to lose.” Exactly what I told my sister.

Investing (he didn’t write “investment”), at its core, is about accepting a certain amount of risk to achieve a reward.

Some people can’t (won’t bother to) articulate and formulate their risk appetite, risk sensitivity, risk profile and risk attitude as carefully as I did in my blog.  For them, it may be useful to decide on the amount of risk capital. It’s a concrete amount of money.

In fact, every investor need to decide for herself an amount of risk capital. There’s nothing wrong with a zero risk capital. My wife once had a zero risk capital.

Note risk capital is a form of capital, a seed to grow.

A defining experience of risk capital — In 1997, my 3rd year in college, I failed to define my risk capital cap and committed my entire family’s savings (600k?) into high-risk, leveraged commodity day trading. I now have probably .5 to 1 million risk capital invested across

— eg: E12
— eg: PE assets from Jill
— eg: overseas rental properties
— eg: SIA investment .. defines my wife’s risk capital
— when you decide the risk capital amount for yourself, you need to determine the amount and quality of a stable foundation beneath the risk capital.

Q: What’s the stable foundation for me? See mail to Joshua.