I have observed people bragging about making money in troubled companies like Jet airways, Yes bank, etc., and which actually had nothing to do with their stock picking skills. When you enter a beaten down stock at the right time and then doubled your money within 3 months, you got just plain lucky. You will not be consistently lucky when you take a blind risk. But when you take a calculated risk or smart risk, the odds for a more successful outcome increase. Calculated risks can be taken through smart asset allocation. This is all the more important to remember now when equity portfolios look evergreen to investors and that tinge of confidence turns to overconfidence or rather arrogance. Hard to distinguish between the two at times. Long term wealth creation through equity investing is all about taking calculated risks. It is not just about how much return you earn, it is about how much you can afford to lose!