A Quote by Mariana Mazzucato

An interesting attribute of public banks is that they don't only de-risk the downside, but also get a share of the upside. — © Mariana Mazzucato
An interesting attribute of public banks is that they don't only de-risk the downside, but also get a share of the upside.
Shareholders share in the downside and not necessarily in the upside; that's the whole story.
No business in the economy has the easy money that banks get to play with.... The existence of banks with single digit amounts of equity is a completely unhealthy existence -- that is not only a risk for the banks, but for all of us.
Targeting investment returns leads investors to focus on potential upside rather on downside risk ... rather than targeting a desired rate of return, even an eminently reasonable one, investors should target risk.
Private equity has absolutely no reason to exist. The private equity holder has all the upside and the banks all the downside.
I think one can easily make a case for taking out Saddam Hussein. In fact, one could probably be made on humanitarian grounds alone. But just as there's a downside risk to doing nothing about this man, there is a very serious downside risk to invading the country.
So one way to create an attractive risk/reward situation is to limit downside risk severely by investing in situations that have a large margin of safety. The upside, while still difficult to quantify, will usually take care of itself. In other words, look down, not up, when making your initial investment decision. If you don’t lose money, most of the remaining alternatives are good ones.
It is only by being bold that you get anywhere. If you are a risk-taker, then the art is to protect the downside.
When things are happening they don't hit me at that point of time. The downside is that I don't get to celebrate the moment, the upside is I don't get intimidated and I can perform.
Interestingly, we have beaten the market quite handsomely over this time frame, although beating the market has never been our objective. Rather, we have consistently tried not to lose money and, in doing so, have not only protected on the downside but also outperformed on the upside.
You know, we always tried to rationalize by saying you take the good, you take the upside, you got to deal with the downside, you've to take the downside.
Credit-default swaps remedied the problem of open-ended risk for me. If I bought a credit-default swap, my downside was defined and certain, and the upside was many multiples of it.
Embrace opportunities with limited downside, unlimited upside. The best deals are those where your risk of loss is predictable and fixed if things go wrong, while your potential gains are enormous if things go right. Take such deals whenever you can get them if the odds of success are halfway decent.
When I started the business, only banks operated at airports, only banks issued travellers' cheques, only banks issued international payments, only banks serviced their own branch networks.
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.
Banks and credit agencies learn continuously about the purchases we make. This is convenient and diminishes the risk of theft. It also means that banks can know more about our lifestyle than our close relatives.
Manage the downside; the upside will take care of itself
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