Investment Risk Management Plan
The biggest risk of investing is permanent loss of principal. This may seem intuitive, yet few investors understand this or employ a comprehensive investment risk management plan.
...The biggest risk of investing is permanent loss of principal. This may seem intuitive, yet few investors understand this or employ a comprehensive investment risk management plan.
...Our discussion of these 7 investment concepts will provide you with a different thought process or approach to investing. Successful value portfolio management requires a different way of thinking. Make the effort to be above average.
...Return on capital ratios provide the value investor with quality metrics that can be employed after, or along side, valuation metrics. This allows the long term investor to look for “wonderful companies at a fair price” (Warren Buffett).
...Return on Total Assets Ratios provide analysts with an indication of management efficiency in utilizing company assets to create profits. Because it includes all (total) assets (assets funded by debt and equity) it is a profitability ratio that interests both creditor and equity stakeholders.
...A comprehensive review and summary of Deep Value -Why Activist Investors and Other Contrarians Battle For Control of “Losing” Corporations, by Tobias E. Carlisle.
Failing businesses, poor management, and unpredictability often provide the most promising investment opportunities. Deep value offers the best risk/reward ratio for investors willing to go against intuition and what is normally accepted by the investment crowd.