Sentences with phrase «permanent capital loss»

The main consideration is the long - term annualized rate of return likely to be achieved, and the probability of permanent capital loss along the way.

This final stage is designed to manage risk — in our view the potential for permanent capital loss.

«Safe» means minimizing the risk of permanent capital loss.

That's because inflation will destroy long - term purchasing power resulting in permanent capital loss (and that's what risk is in Buffett's worldview) while growth in earnings (partly caused by inflation itself) would benefit the equity investor.

That said, I think the holistic approach of sticking to high - quality companies that have lengthy track records of paying and growing dividends is fairly low in risk as far as permanent capital loss.

Second, the less conservative strategy in terms of quality must contend with large spikes in credit spreads that coincide with permanent capital losses on the shakiest of credits.

When I think of Mr. Buffett, even though many people think of the enormous wealth that's been created and what a great investor he is, part of why he's such a great investor is he almost never suffers permanent capital loss.

We learned even though some of our highest returns were from opportunistic investments, our performance was below average when we considered our losses and permanent capital losses such as with retailer Body Central.

Clients should give money to equity managers so that those managers can achieve attractive long - term returns while guarding against the risk of permanent capital loss over the long - term

Horrific Capital Allocation by Management: IMN's cash balance serves as somewhat of a fundamental backstop against permanent capital loss.

«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

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

«The function of margin of safety is, in essence, that of rendering unnecessary an accurate estimate of the future» Ben Graham «The consequences of the stock market revaluing overpriced stocks is often what Graham and I call «permanent capital loss»» Christopher H Browne

This simple process has allowed Gayner to beat the S&P 500 over time by taking much less risk of permanent capital loss.

Seems like he swings for the fences, which may eventually lead to large, permanent capital losses.

Following in his footsteps, many modern value investors clearly state that they don't worry about volatility, and instead focus their risk management on lowering the probability of permanent capital loss.

We seek to buy competitively entrenched, well - managed businesses trading at deeply discounted prices in the public markets to generate superior long - term absolute returns and minimize the risk of permanent capital loss.

We view risk as the possibility of permanent capital loss.

Permanent capital loss has a devastating effect on wealth accumulation.

Having multiple stocks in your portfolio decreases the risk of permanent capital loss.

If the investment is then made at a substantial discount to intrinsic value, then chances of permanent capital loss are minimal.

While there will always be a very real risk of permanent capital loss in investing, those who know their own limits and ask for professional advice when they require it can improve their chances substantially.

That we will attempt to bring risk of permanent capital loss (not short - term quotational loss) to an absolute minimum by obtaining a wide margin of safety in each commitment and a diversity of commitments; and

Doing otherwise has the potential both to result in mediocre long - term returns and to increase the risk of permanent capital loss.

Some point to the low, zero or negative yields available for government bonds, rising equity prices and declining earnings yields — in short the absence of yield in otherwise safe places that have «forced» investors to make riskier investments (as defined by my partnership as having a higher probability of permanent capital loss).

We are unconstrained by geography, industry or market capitalisation, allowing us to focus on long - term returns while seeking to minimise the risks of permanent capital loss.

A small minority of investors, mostly among value investors — a group to which I belong, take a completely opposite view and believe that it is the probability of permanent capital loss, not volatility that constitutes risk.

Following these rules has helped me avoid horrendous and permanent capital losses.

Investing in quality companies quite literally allows me to sleep well at night, and us to reduce the probability of permanent capital loss.