RALPH SEGER

Assess your situation. Build an investment policy statement that will provide general investment goals and objectives. 

• Determine your return and risk objectives.
• Determine your investment strategy, possibly with a financial advisor, based on your investment policy statement.

Of course, I also dismiss the idea that the alpha term in the equation has to be zero. Investment skill exists, even though not everyone has it. Only through thinking about risk- adjusted return might we determine whether an investor possesses superior insight, investment skill or alpha . . . tha...

• Investing is basically “bearing risk in pursuit of profit.”
• The ability to understand, assess, and deal with risk is the mark of the superior investor and an essential requirement for investment success.
• The way investors are collectively viewing risk, and behaving in regard ...