Money and Finance
- Peter Bernstein Quote
From FACING THE CONSEQUENCES:Risk is about how we make decisions, and only incidentally about the math that we employ to reach those decisions. Knowing how it works is just the beginning. Knowing how to use these tools is the introduction to wisdom. And...
- Howard Marks Quote
From The Most Important Thing:When you boil it all down, it’s the investor’s job to intelligently bear risk for profit. Doing it well is what separates the best from the rest. … While risk control is essential, risk bearing is neither...
- Clouds Seen In Regulators’ Crystal Ball For Banks
Five years ago, the financial regulators of the United States — and more broadly the world — didn’t see the storm coming. Would they if a new one were brewing now? The answer to that is far from clear. The regulators have more information now, and...
- John Mauldin's Outside The Box: Game Changer - By Ed Easterling
Investors are confronting the reality of the current secular bear market. It is both the consequence of the previous secular bull market and the precursor to the next secular bull. The duration of the current secular bear period is uncertain. Should inflation...
- Whitney Tilson: Investors Will Miss Out If They Confuse Uncertainty With Risk
Dealing with uncertainty is always a key challenge for investors. But dealing with uncertainty doesn’t mean avoiding it – on the contrary, it is often fuzziness about a company’s future that creates the type of opportunity bargain-hunting investors...
Money and Finance
John Mauldin: Uncertainty and Risk in the Suicide Pool
For the past 80 years, we have created ever more sophisticated models of risk in the economic and investment worlds. With each new tool we create to measure risk, we seem to think we have somehow gained more control over our future. Paradoxically, we appear to believe that the more we understand risk, the more we can somehow control our exposure to it. The more we build elaborate models and see correlations between events and the performance of our investments and the economy, the more confident we become.
And if by some ill fortune we encounter a period of lengthy stability in our models and portfolio performance, we are likely to imbibe a cocktail of collective hubris: we actually think we understand some things in a quantifiable way. We thereupon seek to take on more risk at precisely the time when additional risk is the most disastrous. This week we explore the difference between risk and uncertainty. Perhaps we can even tie all this into our understanding of secular bull and bear markets.
- Peter Bernstein Quote
From FACING THE CONSEQUENCES:Risk is about how we make decisions, and only incidentally about the math that we employ to reach those decisions. Knowing how it works is just the beginning. Knowing how to use these tools is the introduction to wisdom. And...
- Howard Marks Quote
From The Most Important Thing:When you boil it all down, it’s the investor’s job to intelligently bear risk for profit. Doing it well is what separates the best from the rest. … While risk control is essential, risk bearing is neither...
- Clouds Seen In Regulators’ Crystal Ball For Banks
Five years ago, the financial regulators of the United States — and more broadly the world — didn’t see the storm coming. Would they if a new one were brewing now? The answer to that is far from clear. The regulators have more information now, and...
- John Mauldin's Outside The Box: Game Changer - By Ed Easterling
Investors are confronting the reality of the current secular bear market. It is both the consequence of the previous secular bull market and the precursor to the next secular bull. The duration of the current secular bear period is uncertain. Should inflation...
- Whitney Tilson: Investors Will Miss Out If They Confuse Uncertainty With Risk
Dealing with uncertainty is always a key challenge for investors. But dealing with uncertainty doesn’t mean avoiding it – on the contrary, it is often fuzziness about a company’s future that creates the type of opportunity bargain-hunting investors...