Continuing the gyaan series…

  • Risk has to be managed BEFORE starting the journey, not AFTER the event happens
  • Whether it is sex or investing – protection has to be taken before the event 🙂
  • Long term wealth creation has LONG PERIODS of wealth PRESERVATION, growth can wait
  • Risk control is more GREED control in a volatile market
  • Tops and bottoms in markets are for novices and amateurs – played with luck NOT TALENT
  • Skim the market, but leave the tops for the amateurs
  • Professionals have to control greed and fear – at least do it partially instead of waiting with full portfolio
  • Minimizing drawdowns is critical for equity WEALTH creation
  • Small simple nos. are far better than volatile big numbers for long term wealth creation, but IMPOSSIBLE to find
  • Capital preservation is far more critical than what people give it credit for
  • Alpha generation is through RISK MANAGEMENT, not portfolio selection
  • Choosing to buy contrarian to the market is good in theory difficult to execute

 

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