The concerns which fail are those which have scattered their capital, which means that they have scattered their brains also. They have investments in this, or that, or the other, here, there and everywhere
Here were financial people who could seriously consider that stocks are less safe because they have declined in price than they were after they had advanced in price
One way to be adept at avoiding failure is to avoid attempting anything you might fail at
A high volatility 5-to-10-year return stream that might see several 30% drawdowns on the way to a superb 10 year record
They looked at the allocation between stocks, bonds and cash. They found that over 95 percent of the funds’ returns came from their asset allocation.
A risky investment may be volatile, but not every volatile investment is risky.
In such an environment, many investors actually consider investments they are making are low risk when, in fact, they are higher risk.
Diversification is inadequate as a risk management technique and too primitive for the new environment of volatility and uncertainty.
If we calculate the value of a common stock to be only slightly higher than its price, we’re not interested in buying
Take the probability of loss times the amount of possible loss from the probability of gain times the amount of possible gain.