Davis: Risking a 100% loss on an investment is rational with proper sizing
Christopher Davis · Chris Davis: Three Generations of Wealth · Mar 5, 2024 · at 1:03:06
Christopher Davis, chairman of Davis Advisors and Berkshire Hathaway board member, explains how portfolio risk management differs from single-asset risk.
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“At an individual investment level, you know, risk is about the permanent Loss of capital in that investment, and really over a course of a portfolio, because you can be taking a risk of a hundred percent loss in an investment, and it can be a very rational risk to take. You just, you better size it right.”
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