Do Not Trust Financial Market Risk Models Dangerous True Value Illusions

Principal Risks should be Unacceptable in Investing

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Do not accept principal risk while investing short-term cash: the greedy effort to earn a few extra basis points of yield inevitably leads to the incurrence of greater risk, which increases the likelihood of losses and severe illiquidity at precisely the moment when cash is needed to cover expenses, to meet commitments, or to make compelling long-term investments.

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