http://www.subramoney.com/2009/08/newer-forms-of-risk-management/ Personal Finance Sun, 12 Feb 2012 07:29:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.subramoney.com/2009/08/newer-forms-of-risk-management/comment-page-1/#comment-1312 Aniruddha Sat, 15 Aug 2009 08:30:18 +0000 http://www.subramoney.com/?p=2026#comment-1312 Subra, perhaps you'd like to add the following - unless you invest money in a hard-core business (against investing in the market - capital, real-estate or commodity or whatever), your returns on investment aggregated with those of other participants is a 'zero sum game' measured between 2 specific points in time (adjusted for inflation/money supply)- hence the returns you generate are a function of your emotional maturity and ability to take 'contrarian' calls. When we address the aspect of risk, it is always assumed that it is due to external factors, what is ignored is the risk component arising out of an investors decisions! We only realise this after the damage is done. In the world of investing 'poikilotherms' or 'cold-blooded' creatures fare better! Subra, perhaps you’d like to add the following – unless you invest money in a hard-core business (against investing in the market – capital, real-estate or commodity or whatever), your returns on investment aggregated with those of other participants is a ‘zero sum game’ measured between 2 specific points in time (adjusted for inflation/money supply)- hence the returns you generate are a function of your emotional maturity and ability to take ‘contrarian’ calls. When we address the aspect of risk, it is always assumed that it is due to external factors, what is ignored is the risk component arising out of an investors decisions! We only realise this after the damage is done. In the world of investing ‘poikilotherms’ or ‘cold-blooded’ creatures fare better!

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