Sentences with phrase «permanent loss of capital»

There is high risk of permanent loss of capital when we buy into a company that is over valued.
That may be fine for theory, but for those of us who live in the real world, we define risk as permanent loss of capital.
I suffered permanent loss of capital for concentrating in stocks with small margins of safety.
At the right price, we may waive one or more of the above criteria Our selection process is designed to help avoid permanent loss of capital while generating attractive long - term returns.
And by risk I don't mean permanent loss of capital, but rather the wild swings that cause you to run for the hills.
A lesser permanent loss of capital can result in a portfolio that has greater scope to appreciate.
Too bad, because I agree that risk is not volatility, it is the risk of permanent loss of capital.
Conversely, a long - term investor thinks of risk as permanent loss of capital.
Which means taking sufficient margin of safety to avoid permanent loss of capital.
And by risk I don't mean permanent loss of capital, but rather the wild swings that cause you to run for the hills.
«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
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.
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.
«Following a strategy that involved no real risk — defined as permanent loss of capital — Walter produced results over his 47 partnership years that dramatically surpassed those of the S&P 500,» wrote Buffett, whose stewardship of Berkshire
«I will not abandon a previous approach whose logic I understand even though it may mean foregoing 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
As an active investor, I am seeking the highest after - tax return on my capital with low risk to permanent loss of capital.
I believe risk to be the permanent loss of capital, and that volatility simply creates good opportunities to buy or sell at potentially great prices.
Carrying more debt would have generated even more returns, but it could also have led to the permanent loss of capital.
Successful investing requires avoiding the 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
When it comes to investing those biases can lead to sub-optimal returns, or worse, the permanent loss of capital.
Did they suffer the permanent loss of capital of so many who invested in the telecom, media and tech stocks?
Forgetting would only compound what has already been a painful, 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.
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 capital.
They identified mistakes by great investors that resulted in a permanent loss of capital and analyzed why the mistakes occurred.
The key advantage of using margin of safety while investing is that it minimizes the chances of permanent loss of capital.
«A disciplined value oriented approach to deploying capital yields not only higher expected returns but also comes with lower risk — risk defined not as volatility but as permanent loss of capital
What we say for our purposes is that risk involves the exposure of permanent loss of capital» Chuck Akre
In my view, the biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.
The emphasis will always be placed first on preventing the permanent loss of capital, and good results should follow» Michael Burry «When the market goes up, I try to capture 70 to 80 percent of the move, and when the market goes down, I try to lose only 30 or 40 percent of it» Martin Taylor
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.
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).
You have to balance the benefits of a buy - and - hold approach — such as lower taxes and transaction costs, the historical upward bias of the market and the peace of mind that comes from removing yourself psychologically from active investing — against the possibility of a major drawdown or a permanent loss of capital.
All of the statistics that the fund management consultants calculate assume a world where risk is equivalent to variation, rather than 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:
I define risk as the permanent loss of capital.
So long as our country continues to survive and advance, there would be virtually no chance of your portfolio experiencing a permanent loss of capital — the market has historically appreciated over long periods of time and will likely continue to do so.
We define risk as the permanent loss of capital.
But they can be volatile in bear markets (like equities) and carry the risk of permanent loss of capital (like equities).
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.
Then the management took the company private at a small premium to market but at a huge discount to value and also to my cost and I experienced a permanent loss of capital.
The real risk associated with any stock (or for that matter, any investment) is the risk of «permanent loss of capital».
Minimize the probability of permanent loss of capital.

Phrases with «permanent loss of capital»

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