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.
Not exact matches
Did they
suffer the
permanent loss of
capital of so many who invested in the telecom, media and tech stocks?
In my view, the biggest investment risk is not the volatility of prices, but whether you will
suffer a
permanent loss of
capital.
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.
At an individual company level, a net net is more likely to
suffer a
permanent loss of
capital than the average stock:
Did they
suffer the
permanent loss of
capital of so many who invested in the telecom, media and tech stocks?
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.
In my view, the biggest investment risk is not the volatility of prices, but whether you will
suffer a
permanent loss of
capital.
Lu on the other hand views risk as the possibility that you will
suffer a
permanent loss of
capital.
What is the probability that management burns cash and / or destroys assets, so that shareholders will
suffer a
permanent loss of
capital?
You can
suffer a
permanent loss of
capital during periods of rising interest rates or high inflation.