Wednesday, November 19, 2014

Investing for Survival

 Investing for Survival

            9 Rules of Risk

1.       There is no return without risk
Rewards go to those who take risk
2.       Be transparent
Risk should be fully understood
3.       Seek experience
Risk is measured and managed by people, not mathematical models
4.       Know what you don’t know
Question the assumptions you make
5.       Communicate
Risk should be discussed openly
6.       Diversify
Multiple risks will produce more consistent rewards
7.       Show discipline
A consistent and rigorous approach will beat a constantly changing strategy
8.       Use common sense
It is better to be approximately right than precisely wrong
9.       Return is only half the equation
The risk as well as the return needs to be considered when making decisions.
 

No comments:

Post a Comment