Nuggets of Investing Wisdom

Nuggets of Investing Wisdom

A website for serious investors in common stocks – Read by investors in over 150 countries around the world

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risk adjusted return

Volatility and risk – How the investment industry got it wrong

  • by Rodney Smith
  • Posted on July 13, 2025July 13, 2025
  • Part 1: The Field of Play

The riskiness of an investment is not measured by beta (a Wall Street term encompassing volatility and often used in measuring risk) but rather by the probability — the reasoned probability — of that investment causing its owner a loss of purchasing power over his contemplated holding period.

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I differ with Cliff Asness about Risk Adjusted Returns

  • by Rodney Smith
  • Posted on March 3, 2024March 4, 2024
  • Part 1: The Field of Play

Once you own shares in a company, the investment risk you face is a risk that undermines the value of what you own

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