The fund management company GMO has had previously released a particularly instructive white paper for value investors called “Profits for the Long Run: Affirming the Case for Quality”. GMO has since taken the paper off their website. I re-release it here for those investors who are interested in the findings. The chart above is included in the white paper and is a summary of the whole white paper.
In short, low-risk stocks are more profitable and high-risk stocks are less profitable. You can erase the concept of “nothing ventured ,nothing gained” off your investment dictionary.