Managing Risk

You already know that your edge comes from buying undervalued stocks and letting them work over time. But even with a sound process and solid research, you keep second-guessing your trades. You hesitate when it’s time to enter. You trim winners too early. You panic when a position dips. The problem isn’t your strategy, it’s […]

You don’t need to eliminate risk. You need to understand it, isolate it, and price it correctly. The biggest mistake investors make is treating all risk the same—panicking when markets fall, diversifying blindly, or refusing to act because the future looks uncertain. But the truth is: you don’t get paid for avoiding risk—you get paid

The Edge You’re Ignoring Could Be Costing You Millions. For value investors, risk is not the volatility in the market or in the stock price, but in fact it is how you react to it. Most investors obsess over metrics like price-to-earnings ratios, discounted cash flow models, or EBITDA margins. And yet, the biggest edge