Return-averse

Return-averse describes a state of caution or reluctance towards activities, investments, or decisions that involve the potential for generating a return, profit, or benefit. This aversion often stems from a fear of potential loss, risk, or uncertainty. Individuals or organizations exhibiting this characteristic tend to prioritize the avoidance of negative outcomes over the pursuit of potentially higher gains, often opting for safer, lower-yield alternatives. It can manifest in financial strategies, career choices, or even social interactions, reflecting a risk-minimizing mindset.

Return-averse meaning with examples

• The investor, return-averse due to recent market volatility, chose to invest in low-yield government bonds despite the potential for higher returns from riskier assets. This conservative approach prioritized capital preservation over maximizing profits, reflecting a preference for stability and security.
• Her return-averse nature made her hesitant to start her own business, even though she had a groundbreaking idea. The fear of failure, financial instability, and the demanding nature of entrepreneurship kept her rooted in her secure, yet less fulfilling, corporate job.
• The company, return-averse in its marketing strategy, focused primarily on tried-and-true methods, even if they yielded modest results. They avoided experimentation and innovative campaigns, prioritizing consistent, albeit limited, returns over the uncertainty of potentially larger, but riskier, market gains.
• Being return-averse, he always opted for the shortest and simplest travel routes, even if it meant missing out on scenic detours or unique experiences. He valued predictability and efficiency over exploring alternative options, avoiding any potential delays or complexities that could deviate from his plan.