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Risk Control

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July 28, 2012 – Comments (10)

“The road to long-term investment success runs through risk control more than through aggressiveness. Over a full career, most investors’ results will be determined more by how many losers they have, and how bad they are, than by the greatness of their winners. Skilled risk control is the mark of the superior investor” – Howard Marks

10 Comments – Post Your Own

#1) On July 28, 2012 at 2:13 AM, portefeuille (99.66) wrote:

Over a full career, most investors’ results will be determined more by how many losers they have, and how bad they are, than by the greatness of their winners.

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largest gains, largest  losses of my "fund" (biopharma in boldface).



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http://twitter.com/portefeuillefun.

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#2) On July 28, 2012 at 2:16 AM, portefeuille (99.66) wrote:

#1 fund is in the green by around 46% since inception (March 8, 2010).

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#3) On July 28, 2012 at 3:39 AM, ath002 (< 20) wrote:

Hello Porte,

I note that you show ATPG as a holding in your portfolio. Is this a stock thaat you still hold and could you give me your thoughts on why you intend to hold on to it, despite some big losses?

 I too have lost a bit on ATPG and would appreciate your thoughts. 

Kind regards,

Luis 

 

 

 

   

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#4) On July 28, 2012 at 4:20 AM, portefeuille (99.66) wrote:

#3 It is just a 0.15% (of the value of all long positions) position now. I think I will keep it in the fund mostly for "psychological reasons", as I would really hate not having kept any should they "recover". Recovery, of course, is not all that likely currently ...

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#5) On July 28, 2012 at 7:22 AM, ath002 (< 20) wrote:

Thank you for your thoughts Porte.

Regards,

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#6) On July 28, 2012 at 7:22 AM, ath002 (< 20) wrote:

BTW, tried to follow you on Twitter but not getting anything. Are you still posting on Twitter?

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#7) On July 28, 2012 at 9:41 AM, portefeuille (99.66) wrote:

#6 The link at the bottom of comment #1 above should take you to my twitter messages, and you can find a "follow" button there :)

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#8) On July 28, 2012 at 12:20 PM, portefeuille (99.66) wrote:

#1 It looks prettier for the "biopharma sub-fund" ... :)



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#9) On July 28, 2012 at 11:44 PM, awallejr (75.70) wrote:

#3 If you insist on playing ATPG avoid the common.  Your "safer" play is with the bonds.  The preferred is your larger "gains" play but riskier than the bonds. The preferred will follow the common at 4.5 times the price of common at these levels (discounting the yield since the market is discounting it) so they can still fall some more. ATP doesn't need to liquidate, it needs to reorganize.  The company is viable, the debt is strangling.

As for the original quote I say yes and no. It is important to control losses (a hard thing to do without discipline) but great wealth will occur from taking great risks.  The older one is the less inclined they will be in taking those risks.  Age, then, is an important variable.

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#10) On July 30, 2012 at 5:12 PM, ath002 (< 20) wrote:

Thanks Awallejr, appreciate yr input

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