Instead of being a victim of stock market volatility a value investor can take advantage of it to increase investment returns. The value investor must be able to think the opposite, or contrary, to what others are thinking; particularly when there is a large majority or consensus on an investment.
...Understanding the types of investment risk allows an investor to manage risk and optimize outcomes. Let’s look at the different types of investment risk and how a portfolio manager can use the tools available to improve their probability of positive outcomes instead of negative outcomes.
...If we have a stock market crash, is your asset allocation right to protect your portfolio from large losses? Many investors mistakenly believe that because they are “long term investors” they shouldn’t concern themselves with “short term” returns. They are wrong!
...The words investment probability theory might initially cause your eyes to glaze over with boredom. But I believe I can make it practical for you and we can learn important lessons from a basic understanding of investment probability.
...When someone says “The Father of Value Investing” most value investors know immediately they are talking about Benjamin Graham (1894 – 1976). Graham developed the concept of fundamental security analysis, and introduced value investing strategies that are still guiding successful investors today.
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As founder of the Arbor Investment Planner my passion is to educate and empower the individual investors to manage their own investment portfolio.
The Arbor Investment Planner is a value investment portfolio management guide for those individual investors who choose to manage their own money. I focus on ideas and concepts important to the self directed investor; but put special emphasis on risk management, value investing strategies, and proper asset allocation and diversification.
- Ken Faulkenberry
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