Risk management

Safety first, driving high returns

  • Rule number one: Safety First. Don’t lose your money. Priority is ensuring the return OF capital, the return ON capital will follow
  • Only with rule number one satisfied: Margin of Safety drives upside
  • A steeper discount equals less risk AND higher potential returns
  • Attractive fundamentals at a bargain price. Only invest in companies that are worth substantially more than the current price
  • Identify weaknesses: can we “kill the business”
  • Minimizing errors: our checklist of 75+ items reduces risk and identifies concerns