It would be like buying a penny stock and characterizing it as low risk/ high reward, because if it hits there will be a lot of upward leverage. If your investment guy recommends something like this, fire him immediately. Carp was cheap because he is not very good. He's a long shot to be a good major league ballplayer. Therefore, he is a high risk acquisition. If he performs at or above the major league level, the return will be high, because his cost was low. He is a high risk/high reward acquisition. It is because he is high risk that he is cheap. It is because he is cheap that he would yield a high reward in the unlikely event that he performs at or above MLB levels.