Risk comes from not knowing what you're doing.
If you don't know the Jewelry, know the Jeweller
When forced to choose, I will not trade even a night's sleep for the chance of extra profits.
Risk is a part of God's game, alike for men and nations.
The greater the potential for reward in the value portfolio, the less risk there is.
Don't risk what is important to you, to get what is not important to you.
Risk comes from not knowing what you are doing so wide diversification is only required when investors are ignorant. You only have to do a very few things in your life so long as you don't do too many things wrong.
At Berkshire, I both initiate and monitor every derivatives contract on our books ... If Berkshire ever gets in trouble, it will be my fault. It will not be because of the misjudgments made by a risk committee or chief risk officer.
The strategy we've adopted precludes our following standard diversification dogma. Many pundits would therefore say the strategy must be riskier than that employed by more conventional investors. We disagree. We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with its economic characteristics before buying into it.
Never risk what you have and need for what we don't have and don't need.
Risk can be greatly reduced by concentrating on only a few holdings.
Investment decision should be made on the basis of the most probable compounding of after-tax net worth with minimum risk.
It is madness to risk losing what you need in pursuing what you simply desire.
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