by KenFaulkenberry | Jan 19, 2014 | Risk
Value investing is about purchasing investment assets at prices that put the odds of above average returns heavily in your favor. Excepting an investment that is going to go bust, almost any investment can be profitable if purchased at a low enough price.
The key to successful value investing is buying assets when the perceived risk is greater than the real risk. It’s equally important to avoid assets when the perceived risk is less that the real risk.
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by KenFaulkenberry | Jan 12, 2014 | Portfolio Management
Portfolio rebalancing and weighting are powerful risk management strategies every investor should employ. This is universal for every investor, but especially relevant for the value investor.
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by KenFaulkenberry | Jun 16, 2013 | Portfolio Management
You can control investment losses by determining your probable maximum loss and choosing an asset allocation that is consistent with your investment philosophy. How much of your investment portfolio can you afford to lose is one of the most critical questions you should ask yourself.
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by KenFaulkenberry | Apr 21, 2013 | Portfolio Management
You can avoid the disadvantages of diversification in investing by managing your own portfolio. Diversification is one of the most important concepts in investment portfolio management, but proper diversification is the key. While building your portfolio keep in mind the disadvantages of diversification in investing to help you achieve optimal diversification.
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by KenFaulkenberry | Apr 9, 2013 | Portfolio Management
Asset correlation is a measurement of the relationship between two or more assets and their dependency. This makes it an important part of asset allocation because the goal is to combine assets with a low correlation.
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