A Quote by Charlie Munger

Using volatility as a measure of risk is nuts. Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return.

Charlie Munger

Quote Topics

Capital Inadequate Loss Measure Nuts Permanent Return Risk Us Using Volatility

Quote Author

Charlie Munger
American - Businessman
Born: January 1, 1924

We regard using [a stock's] volatility as a measure of risk is nuts. Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return. Some great businesses have very volatile returns - for example, See's [a candy company owned by Berkshire] usually loses money in two quarters of each year - and some terrible businesses can have steady results.

Charlie Munger

To laugh is to risk appearing a fool. To weep is to risk appearing sentimental. To reach out to another is to risk involvement. To expose feelings is to risk exposing your true self. To place your ideas and dreams before a crowd is to risk their loss. To love is to risk not being loved in return. To hope is to risk pain. To try is to risk failure. But risks must be taken, because the greatest hazard in life is to risk nothing.

William Arthur Ward

In my view, the biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital. Not only is the mere drop in stock prices not risk, but it is an opportunity. Where else do you look for cheap stocks?

Li Lu

to love is to risk, not being loved in return. to hope is to risk pain. to try is to risk failure. but risk must be taken because the greatest hazard in my life is to risk nothing.

Bob Marley

If we leave the European Union it's a risk to our economy - it's a risk to pensioners, it's a risk to homeowners, it's a risk to people in work.

George Osborne

Operational risk is the risk of loss resulting from bank operational failures, such as rogue traders, fraudulent sales practices, and cyber risks. Operational risk capital is money or assets that banks have to hold to shield the economy from the consequences of these kinds of failures.

Seth Moulton

Mastery over the body - its impulses, its needs, its size - is paramount; to lose control is to risk beauty, and to risk beauty is to risk desirability, and to risk desirability is to risk entitlement to sexuality and love and self-esteem.

Caroline Knapp

When investing, I'm not against risk. If you take no risk you must expect a low return. Just don't let anyone fool you into thinking you can get a high return with low risk.

Paul Clitheroe

What caused 2008, in my opinion, is that people just didn't see the risk. These people that took on all this risk didn't think they had it - they thought they hedged it all away. As long as there's a perception of risk, and a culture of looking for risk, it's going to be hard to deflate us.

John Manley

The risk of working with people you don't respect; the risk of working for a company whose values are incosistent with your own; the risk of compromising what's important; the risk of doing something that fails to express-or even contradicts--who you are. And then there is the most dangerous risk of all--the risk of spending your life not doing what you want on the bet that you can buy yourself the freedom to do it later.

Randy Komisar

A bank needs models to measure risk. The problem, however, is that any one bank can measure its risk, but it also has to know what the risk taken by other banks in the system happens to be at any particular moment.

Myron Scholes

Risk is the universe's way of pushing us to become more than what we are. Risk is faith at the edge. Risk is the pulsating nature of life.

Sarah Strohmeyer

To laugh is to risk appearing a fool, to weep is to risk appearing too sentimental, to reach out for another is to risk involvement, and to expose feelings is to risk exposing one's true self.

Leo Buscaglia

Risk managers and investment bankers and actually, all kinds of investors took on more risk than they expected. So there was a failure of risk management. There was a failure to recognize how much risk there was in some of these securities that people bought.

Robert F. Engle

The church seeks to help form people who can risk being peaceful in a violent world, risk being kind in a competitive world, risk being faithful in an age of cynicism, risk being gentle among those who admire the tough, risk love when it may not be returned, because we have the confidence that in Christ we have been reborn into a new reality.