The essence of investment management is the management of risks, not the management of returns.
Over the past four hundred years, the world has endured a significant financial crisis, on average, once a decade. You might have noticed that the pace of events isn’t exactly slowing down.
We already know that loss avoidance is the biggest single factor in accumulating long-term wealth. That’s gotten tougher, because the world’s ever greater complexity means ever greater instability. But it’s also gotten easier, because the ways in which we can diversify and manage risk ...