Managing risk is the most thankless job in finance. It’s like working in IT. If things go wrong, everyone comes and blames you but if things go well, nobody comes and says thank you. A main feature of investing is that you cannot try out new ideas in a laboratory and perfect them there until they are ready for the real world. You have to try investment ideas in the real world. This also means that things not only can but will go wrong. The job of an investor is to protect the portfolio from unwanted or excessive losses.
The impotence of the counterfactual
The impotence of the counterfactual
The impotence of the counterfactual
Managing risk is the most thankless job in finance. It’s like working in IT. If things go wrong, everyone comes and blames you but if things go well, nobody comes and says thank you. A main feature of investing is that you cannot try out new ideas in a laboratory and perfect them there until they are ready for the real world. You have to try investment ideas in the real world. This also means that things not only can but will go wrong. The job of an investor is to protect the portfolio from unwanted or excessive losses.