The Story of Wealthy Investors / Howard Marx's Risk Management Key

The Story of Wealthy Investors / Howard Marx's Risk Management Key

"Rather than making the most profit in an environment that is favorable to you,
It's more important to survive in unfavorable environments."

Careful risk management starts with a very natural question.

[What could go wrong?]

Now is a good time to think again.

"The point of risk management is
It's not a normal state,
It's a transitional state,
The trend is that it's not meant to be."
- Peter Bernstein

"The key is to have a strategy in advance before problems arise,
Because accurately predicting the direction of stocks or the economy is something no one has done so far."
- Seth Klarman

Big losses last forever.

"If you avoid major losses through strong defense measures,
There will always be moments when you will see profits.
And there's always a big loss,
It's caused by taking a lot of risk to get a lot of things."

- Charlie Ellis

"When the time of fear came,
The cost of converting non-current assets into cash is very high.
It's either impossible to find measures that can only be avoided, or the cost is very high."

- Myron Scholes

"I spend a big part of my personal time figuring out just one thing.
How aggressively or how defensively you have to structure your portfolio at a certain time."

- Howard Max

"We always try to prepare for tail risk.
The odds are very low, but we prepare for events that produce disastrous results."
- Seth Klarman

"It is inevitable to take risks in investment and life,
There is no need to take unnecessary risks."
- Peter Bernstein

"Hot potatoes must be handled with care."
- Benjamin Graham

"Our last decade has proven that extreme market irrationality occurs periodically.
And investors who want to boost their skills should learn what to do next time this happens."
-Warren Buffett

"You always have to ask yourself.
'If I get hit, how much will I earn?'
"If I get it wrong, how much do I lose?"
That's the return on risk."
- Howard Max

"Survival in investment should not be achieved in the long run, on average, but in the short run."
- Howard Max

"A big rise in the stock market is basically a warning sign,
It shouldn't be a reason for confidence."
- Benjamin Graham

"To avoid losses and have a better return than the market,
It's not a very happy thing."
- Joel Greenblatt