I do not think that most clients would want their managers investing in equities irrespective of the possibility
for permanent capital loss or potential long - term returns
This final stage is designed to manage risk — in our view the potential
for permanent capital loss.
Not exact matches
And by risk I don't mean
permanent loss of
capital, but rather the wild swings that cause you to run
for the hills.
«It has been our experience that excessive debt (almost always taken on during periods of optimism) is the single most common cause of
permanent capital loss for investors» Zeke Ashton
We of course are striving
for much higher returns, and so we must be opportunistic and search
for extreme value, with the number one goal (and number two goal) of always protecting against
permanent loss of
capital.
For instance, if you have to write a check for your daughter's wedding in two days and your portfolio is down 30 percent, then volatility and risk are one and the same, since your sale will result in a permanent loss of capit
For instance, if you have to write a check
for your daughter's wedding in two days and your portfolio is down 30 percent, then volatility and risk are one and the same, since your sale will result in a permanent loss of capit
for your daughter's wedding in two days and your portfolio is down 30 percent, then volatility and risk are one and the same, since your sale will result in a
permanent loss of
capital.
This should matter
for all investors as in a world of low returns, ensuring the avoidance of
permanent loss of
capital is paramount.
Seems like he swings
for the fences, which may eventually lead to large,
permanent capital losses.
A
permanent loss of
capital occurs when a stock goes down because of worsening business operations and stays down
for a very long time or even forever.
While we don't think using volatility as a proxy
for risk is appropriate (we view risk as the potential
for permanent loss of
capital), investors should be well - aware of the nature of the investments to which they will likely be exposed.
This resulted in a market meltdown that caused substantial drawdowns in value
for many equity mutual funds, in a range of forty to sixty per cent, causing many small investors to panic and suffer a
permanent loss of
capital which many of them could not afford nor replace.