Nuggets of Investing Wisdom

Nuggets of Investing Wisdom

A website for serious investors in common stocks

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risk

Risk when markets are down

  • by Rodney Smith
  • Posted on June 19, 2022June 26, 2022
  • Part 1: The Field of Play

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

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Moderate risk tolerance

  • by Rodney Smith
  • Posted on March 20, 2022March 20, 2022
  • Part 3: Thoughts for the Individual Investor

One way to be adept at avoiding failure is to avoid attempting anything you might fail at

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How to cope with volatility

  • by Rodney Smith
  • Posted on December 5, 2021December 6, 2021
  • Part 1: The Field of Play

A high volatility 5-to-10-year return stream that might see several 30% drawdowns on the way to a superb 10 year record

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My thoughts on asset allocation

  • by Rodney Smith
  • Posted on August 22, 2021August 23, 2021
  • Part 5: Asset Management

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.

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Let’s clear up misunderstandings about risk and volatility

  • by Rodney Smith
  • Posted on May 30, 2021May 30, 2021
  • Part 1: The Field of Play

A risky investment may be volatile, but not every volatile investment is risky.

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How much riskier are stocks than bonds?

  • by Rodney Smith
  • Posted on January 31, 2021May 3, 2021
  • Part 5: Asset Management

In such an environment, many investors actually consider investments they are making are low risk when, in fact, they are higher risk.

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Let’s cut to the heart of how risk and uncertainty impact diversification

  • by Rodney Smith
  • Posted on November 9, 2020November 10, 2020
  • Part 1: The Field of Play

Diversification is inadequate as a risk management technique and too primitive for the new environment of volatility and uncertainty.

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The joy of higher return with no more risk

  • by Rodney Smith
  • Posted on May 18, 2020November 10, 2020
  • Part 1: The Field of Play

If we calculate the value of a common stock to be only slightly higher than its price, we’re not interested in buying

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Many investors just don’t understand the risk/reward trade-off

  • by Rodney Smith
  • Posted on May 10, 2020May 10, 2020
  • Part 1: The Field of Play

Take the probability of loss times the amount of possible loss from the probability of gain times the amount of possible gain.

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The great investors and extreme volatility

  • by Rodney Smith
  • Posted on March 10, 2020March 10, 2020
  • Part 1: The Field of Play

Be prepared financially and psychologically to live through a series of bull markets and bear markets because in the long run common stock will pay off enormously and the next bull market will carry prices far higher than this one

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