- The value added by a portfolio manager comes from reducing risk at a given return, rather than achieving higher returns at a given risk
- The ability to intelligently bear risk for profit can be demonstrated through a record of repeated success over a long period of time
- It’s important to be prepared for once-in-a-generation events, but it’s not necessary to prepare for the worst case scenario
- Risk control is the best route to loss avoidance, but risk avoidance may lead to return avoidance as well
