Jean-Marie Eveillard on WealthTrack
Read the full article at: http://link.brightcove.com/services/link/bcpid370322720/bclid1173345226/bctid1583041385
Submitted by SilverSlime on Tue, 2008-06-03 06:51.
(via link.brightcove.com)
The subject is managing investment risk. What is it? How much can you really take? What can you do about it? We'll ask renowned financial consultant Charles Ellis; legendary global money manager Jean-Marie Eveillard and Goldman Sachs' former risk honcho, now quantitative strategy head, Robert Litterman.
Jean-Marie Eveillard on value investing as risk management
This was a great discussion with Jean-Marie Eveillard on risk, volatility, and how risk can be managed via value investing. He list 3 ways to manage risk as a value investor:
1. Look at specific securities. Examine the strengths and weaknesses of their businesses and maintain a margin of safety.
2. Diversify: Own assets not correlated to equity markets. Eveillard invests in gold.
3. "You got to wait for the fat pitch." Learn to sit on your hands.
The ActionPoint of the day was, "Own something you are uncomfortable wiith." Value investors should definitely have equities in their portfolio that they would be embarrassed to share with their friends and family.