Risk is a hot potato. (In more ways than one.) We can’t talk about risk until we define it and give it context.
YODA from Star Wars said, “Named must your fear be before banish it you can.”
Taking it from the sky to the street…
Warren Buffet said, “Risk comes from not knowing what you’re doing.”
Define risk and give it context.
First the definition.
At Prospector, we view investment risk as the risk of a permanent loss. We view volatility as a symptom of risk, but not an actual risk.
Want to learn more about the context? How do we seek to manage individual security risk as well as portfolio level risk? Read our Q&A with Portfolio Managers.
