STREET DOGS: Time-honoured bromides on risk

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High-risk investments can’t be counted on for high returns 🔒

“Time-honoured bromides” on risk from Howard Marks:

The market awards appropriate risk premiums: The truth is that investors’ risk-averseness fluctuates between too much and too little. When it’s the latter, scepticism and conservatism dry up, due diligence is inadequate, risky deals are easy to pull off, and compensation for risk bearing usually turns out to be insufficient...

 

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