Sentences with phrase «of permanent loss of capital»
There is high risk of permanent loss of capital when we buy into a company that is over valued.
sleepycapital.com
As so often proclaimed here on the blog, risk is the probability of 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.
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).
The key advantage of using margin of safety while investing is that it minimizes the chances of permanent loss of capital.
What we say for our purposes is that risk involves the exposure of permanent loss of capital» Chuck Akre
They then structure their actions and investments in order to reduce the risk of permanent loss of capital in the event that undesirable eventsand developments actually occur.
While there might be higher returns associated with higher levels of debt, the increased risk of a permanent loss of capital when dealing with companies that carry excessive debt may exceed the benefit of those returns.
Given that the company is trading below what we believe to be a conservative estimate of liquidation value and not burning any cash, we believe there is very little risk of a permanent loss of capital at current prices.
The key advantage of using margin of safety while investing is that it minimizes the chances of permanent loss of capital.
EXAMPLE CHECKLIST ITEMS - Is there risk of permanent loss of capital?
«My job, as manager and fellow owner, is to allocate the vehicle's capital to produce the highest absolute return on invested capital while minimizing the risk of permanent loss of capital» Michael Burry
Rather simple, when you ponder it a while» Frank Martin «I think volatility is so widely used as a risk - metric simply because it is easy to measure, not because it is a good gauge of risk of permanent loss of capital.
Too bad, because I agree that risk is not volatility, it is the risk of permanent loss of capital.
To help us determine the risk of a permanent loss of capital, we ask ourselves a few straightforward questions when considering any investment opportunity:
But they can be volatile in bear markets (like equities) and carry the risk of permanent loss of capital (like equities).
These types of investors are willing to suffer through periods of temporary (but significant) loss of capital in an attempt to find opportunities where the probability of the permanent loss of capital is small.
River Road's mantra, «keep mistakes small,» informs a balanced approach to diversification and a structured sell discipline that seeks to reduce portfolio volatility and the risk of permanent loss of capital
Stocks and other investment vehicles are inherently filled with risks including the possibility, or even likelihood, of permanent loss of capital.
A better definition is «the probability of a permanent loss of capital,» says George Athanassakos, professor of finance at the Ivey Business School at Western University.
I view risk as the risk of permanent loss of capital, not the volatility of a stock.
The way I think about risk, though isn't whether a company is volatile, but whether there is a risk of permanent loss of capital.
Seahawk Drilling (NASDAQ: HAWK) is a compelling investment opportunity with very little risk of a permanent loss of capital.