Money and Finance
- 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...
- Target Risk, Not Return
From Seth Klarman, via Margin of Safety:Targeting investment returns leads investors to focus on upside potential rather than on downside risk....Rather than targeting a desired rate of return, even an eminently reasonable one, investors should target...
- Hussman Weekly Market Comment: A Warning Regarding Broken Speculative Peaks
Frankly, I wonder whether any amount of arm-waving will incline investors to actually examine their risk exposures here, much less consider the prospect of a 40%+ decline in the S&P 500 Index that would be required simply to bring stocks to historically...
- 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...
- Recent Sell: Kmi & Esv; Recent Buy: Hasi
I sold all my share of KMI and ESV on December 7, 2015 (1 day before KMI dividend cut). On December 11, 2015, I bought 29 shares of Hannon Armstrong Sustainable Infrastructure Capital (HASI) at $16.58/share. What is HASI? It's a reit yieldco...
Money and Finance
Whitman, Diz on risk
From the book Modern Security Analysis: Understanding Wall Street Fundamentals:
Risk is a word that should not be used without an adjective in front of it. Just because a common stock might have a lot of market risk (i.e., a plunge in OPMI [Outside Passive Minority Investor] market price) and a company might have a lot of investment risk (i.e., the business is unlikely to survive as a going concern) does not mean that adequately secured lenders to the corporation are taking any credit risk at all. Creditors can be confident that the loan will remain a performing loan or that in a reorganization, they will receive a value of principal amount plus interest and interest on interest. General risk really does not exist.
- 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...
- Target Risk, Not Return
From Seth Klarman, via Margin of Safety:Targeting investment returns leads investors to focus on upside potential rather than on downside risk....Rather than targeting a desired rate of return, even an eminently reasonable one, investors should target...
- Hussman Weekly Market Comment: A Warning Regarding Broken Speculative Peaks
Frankly, I wonder whether any amount of arm-waving will incline investors to actually examine their risk exposures here, much less consider the prospect of a 40%+ decline in the S&P 500 Index that would be required simply to bring stocks to historically...
- 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...
- Recent Sell: Kmi & Esv; Recent Buy: Hasi
I sold all my share of KMI and ESV on December 7, 2015 (1 day before KMI dividend cut). On December 11, 2015, I bought 29 shares of Hannon Armstrong Sustainable Infrastructure Capital (HASI) at $16.58/share. What is HASI? It's a reit yieldco...