And by risk I don't
mean permanent loss of capital, but rather the wild swings that cause you to run for the hills.
Not exact matches
«I will not abandon a previous approach whose logic I understand even though it may
mean forgoing large, and apparently easy, profits to embrace an approach which I don't fully understand, have not practiced successfully and which, possibly, could lead to substantial
permanent loss of capital.»
There are a few good reasons that the Investment Masters haven't been advocating bonds; they're expensive, the return profile is asymmetric, there's no upside participation, prices have been manipulated, and a bout
of unexpected inflation would
mean some seriously
permanent capital losses.
These are companies that are priced at significant discounts to their underlying business value and are low risk (
meaning low risk
of permanent loss of capital, not volatility).
«Safe»
means minimizing the risk
of permanent capital loss.
To us, a margin
of safety
means taking measures in our fundamental and valuation analyses with the aim
of avoiding a substantial or
permanent loss of capital, even if an investment experiences temporary setbacks or headwinds.