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14 results for “investment risk”
...risks. Low liquidity stocks are always gonna have certain types of risks that don't exist in high liquidity stocks. But when you think about these factors, these do not strike you as iron laws of how markets work, that you will at some point get comp
32:55 / 33:59
from transcript32:55 – 33:59
...risky. They are the results are highly uncertain over any fine period of a varied period of time. So they can't do poorly for long periods of time. They can also go away. If there's too many people jump on things, it can cause them to go away. So it'
31:58 / 33:20
from transcript31:58 – 33:20
...risk that you want to quantify. The first thing that you do is you figure out what that risk is, a full distribution of outcomes. And then you look at the instrument set that's out there in the marketplace starting from the most reliable and, surpris
32:15 / 33:23
from transcript32:15 – 33:23
...risk premium. I think you just have to underwire the wider distributions of scenarios in everything that you're doing. From a macro perspective, it doesn't take much to destabilize markets. The market is not just all on one side of the boat. Everyone
52:22 / 53:33
from transcript52:22 – 53:33
And that's been against a backdrop of relatively benign socio political economic indicators globally. Up until 2020, everyone, public or private, has been investing in a world where their multiples have been expanding, and that has been a very forgiv
8:12 / 9:21
from transcript8:12 – 9:21
...of our risk management tools have these guardrails in mind to highlight to us, this is starting to move out of that comfort range. Let's dig into it. In particular, the stress testing piece is very important. And the reason for that is most of the ti
31:32 / 32:47
from transcript31:32 – 32:47
So it ended up being a shock to the system that did not undermine the underlying economic conditions, and and things ended up being okay. But you're making a really important observation, which is there tends to be the upside tends to be more gradual
35:03 / 36:33
from transcript35:03 – 36:33
...not making some risky investment, you know, with our money. So now the more technical term is your expected utility, but we try to jump through expected utility by saying, let's just translate expected utility into certainty equivalent wealth or risk
11:21 / 12:32
from transcript11:21 – 12:32
...out what that risk is, a full distribution of outcomes. And then you look at the instrument set that's out there in the marketplace starting from the most reliable and, surprisingly enough, like Joe mentioned already, the cheapest one, which is equit
32:59 / 34:02
from transcript32:59 – 34:02
...some crowded risk? There's some of that in there. When I'm in the market, I felt it crowded in various times. I felt it more crowded in 2010 to 2019. The markets were small, but vol was low. And so what happens when vol is low is some people accept a
53:11 / 54:17
from transcript53:11 – 54:17
...own risk appetites and what can they really handle.
29:16 / 30:25
from transcript29:16 – 30:25
...and risk better, they should be able to exploit this volatility. The paradox of skill is a compelling narrative, but it is far from a definitive explanation for aggregate active manager underperformance. That leaves a third possibility. The S and P 5
5:21 / 6:23
from transcript5:21 – 6:23
...risks are you worried about? Let's set aside the geopolitical. We could talk about that all day. The big risk that I see in markets that I think is ignored is the risk of illiquidity, and I see it in all sorts of places. I see it with private equity
38:11 / 39:41
from transcript38:11 – 39:41
...contagion risk is what we lose sleep about every time. Is everyone gonna start heading out of markets now? Maybe the next one's gonna be way worse, but you've had a couple of interesting events in the last five years, six years. COVID was a real even
52:24 / 53:31
from transcript52:24 – 53:31
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