There are many ways to define risk. Warren Buffett has said that "risk comes from not knowing what you're doing."
Q3 2020 hedge fund letters, conferences and more
His mentor, Benjamin Graham, believed that risk should be measured as the chance of a permanent capital impairment of an investment. Seth Klarman also holds this view.
He once said, "The best investors do not target return; they focus first on risk and only then decide whether the projected return justifies taking each particular risk."
Risk is one of investing's most important concepts. Unfortunately, it is also...
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