John Maynard Keynes Quotes

When you take smaller gambles, no one particular deal can be big enough to have a material adverse effect on the company.

We make a series of investments, some will pan out and some won't.

Wide diversification is only required when investors do not understand what they are doing.

I have plenty of investments that I wish I'd never made. But the model is to lose money on a lot of investments and then make 1,000X or 10,000X on an investment.

There's a tendency to look at investments in isolation. Investors focus on the risk of individual securities.

Everything's a risk, by the way, these days. Every film you make is a risk. There's no guarantee.

Many follow a rule of thumb - no more than 5% in one stock. But that's not the entrepreneurial road to riches.

If you are not making any mistakes, you are being excessively risk-averse. Investing involves risk, and that means you will occasionally be wrong. And although it is okay to be wrong, it is not okay to stay wrong.

My view is that one should diversify broadly across different fund investments. However, it's tough for investors to try to pick the appropriate risk level that they should manage their funds at. Having a personal adviser would be helpful.

I've learned that all investments have risk.

Well, there's always risk in long-term investment.

I think it is crucial to diversify one's portfolio.

I don't think you should put all your money in one place. It must be invested in different investments.

I think the people who've been the most overconfident in our business in the last decade have been the people that called themselves risk managers.

Market risk is like taking a plunge into a cool pool ... a lot of people are finding out right now what their risk tolerance is.

If you don't invest in risk management, it doesn't matter what business you're in, it's a risky business.

There's no use diversifying into unknown companies just for the sake of diversity. A foolish diversity is the hobgoblin of small investors. That said, it isn't safe to own just one stock, because in spite of your best efforts, the one you choose might be the victim of unforeseen circumstances. In small portfolios, I'd be comfortable owning between three and ten stocks.

I don't think you should invest in commodities. Eddie Murphy made it seem risky in Trading Places.

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.

The greater the potential for reward in the value portfolio, the less risk there is.

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.

I think one lesson we have to learn is that there's a lot more risk than we're giving credit to, a lot more what economist calls systematic risk.

As time goes on, I get more and more convinced that the right method in investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes. It is a mistake to think that one limits one's risk by spreading too much between enterprises about which one knows little and has no reason for special confidence. . . . One's knowledge and experience are definitely limited and there are seldom more than two or three enterprises at any given time in which I personally feel myself entitled to put full confidence.

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.

It's the investor who is risky, not the investment.