Ironically, the four faces of risk reverse actual risk. Risk is perceived to be highest in bear markets; moderate in sideways markets; increasingly lower in bull markets; and, more or less ignored, in bubbles.
And if a person sets out to make profits from security purchases and sales, he is embarking on a business venture of his own, which must be run in accordance with accepted business principles if it is to have a chance of success.
Businesses retain earnings, with these going on to generate still more earnings–and dividends, too.
When investing, we view ourselves as business analysts – not as market analysts, not as macroeconomic analysts, and not even as security analysts
A major reason is that businesses retain earnings, with these going on to generate still more earnings–and dividends, too
Leaving moderate risk in the dust
Once you own shares in a company, the investment risk you face is a risk that undermines the value of what you own
He will risk half his fortune in the stock market with less reflection than he devoted to the selection of a medium-price automobile
You should wish your earnings to be reinvested if they can be expected to earn high returns.
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