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.
Not exact matches
As an active investor, I am seeking the highest after - tax return on my
capital with low risk to
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.
Stocks and other investment vehicles are inherently filled
with risks including the possibility, or even likelihood, of
permanent loss of
capital.
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.
Seahawk Drilling (NASDAQ: HAWK) is a compelling investment opportunity
with very little risk of a
permanent loss of
capital.
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.
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.