FYI: Earlier this week I moderated a session at Inside ETFs called “How to capture outperformance and manage risk.”
Before tackling the challenges of outperformance, I wanted to ask everybody how they think about the amorphous concept of risk. The responses ran the gamut from “the chance of permanent loss of capital” to “the chance of running out of money” and everything in between. Risk is a gargantuan force that can’t be wrestled into one sentence or even a singular idea, but if you’ll allow me to channel my inner Charlie Munger via Tren Griffin for a moment- I think risk is best thought of through the prism of inversion; Risk is the opposite of risk-free. Risk-free however is a bit or a misnomer because risk rules everything around us.
Regards,
Ted
https://theirrelevantinvestor.com/2019/02/14/the-elimination-of-risk/
