Bankruptcy risk – Perpetual Prudence

PP3: Limit Your Downside

29/03/202105/07/2022 Haydn Martin 0 Comments Bankruptcy risk, Downside, Principles, Upside

Think about return in terms of upside and downside, rather than probabilistic expected return. Limit your downside. Upside takes care of itself.

Bonds Stocks

Does Equity Always Win?

28/01/202114/07/2022 Haydn Martin 0 Comments Bankruptcy risk, Corporate Bonds, Equity Risk Premium, Fluctuation risk, Government Bonds, History

Does equity always beat other asset types? It seems to beat the “risk-free” rate of return. Why?

The Fundamentals

PPP 2: Starting With Risk

03/12/202014/07/2022 Haydn Martin 0 Comments Bankruptcy risk, Fluctuation risk, History, Principles

Before you start worrying about returns, worry about risk. Focus on the potential downsides of your portfolio and the returns will take care of themselves.