Been talking to a lot of investing people about Risk recently: what it is, how to measure it, how to control it.
Why Risk matters
Risk is one of those things you don’t realize you have too much of until it’s too late. Being able to manage risk effectively is essential in the investment process. Get it right and you hit your goals. Get it wrong and the potential for catastrophic losses is immense.
I don’t agree with the buy-and-holders who believe holding forever erases risk. Risk is always there, lurking around the corner.
There are huge issues and ones that many academics and entrepreneurs are beginning to tackle in meaningful ways. Imagine if we can get to a point where we can personalize risk — with financial advisors and with DIY investing tools.