More often than not, the most significant asset may not be on the balance sheet.

In a marketplace, perception is more powerful than reality.

In a rising price environment, people tend to throw analysis of risks out of the window. In their mind, the only possible risk is not to join the party.

People like to risk pennies to win dollars.

When people hear others’ stories about becoming overnight millionaires, they act upon it and invest their life savings, their houses, and their retirement funds.

Investing without a clear understanding of associated risk is like a child is playing with fire. Risk assets are called risk assets for a reason.

An investment business has certain risks, and your job as an investor is not to eliminate all risks but to manage and minimize them.

Don’t be fearful of risks. Understand them, and manage and minimize them to an acceptable level.

The actual risk is the permanent loss of capital or, to a lesser extent, a sub-par return. Temporary volatility in market price is not a real risk.