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Are you minimising drawdowns on your investments?

posted Nov 26, 2019, 3:08 AM by Harshul Vohra
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This quote by Peter L. Bernstein “Survival is the only road to riches” is very important in investing. He says Wealth is like your children — the primary link between your present and the future. You should try to think about it in the same way. You want your children to have freedom but you also want them to be good people who can take care of themselves. You don’t want to blow it, because you don’t get a second chance. When you invest, it’s not your wealth today, but it’s your future that you’re really managing.
The role of a money manager isn’t maximising returns but optimising them with respect to risks. Drawdowns should be minimised even at the cost of sacrificing some returns. Risk-taking is an inevitable ingredient in investing, and in life, but never take a risk you do not have to take. 😇