Profound words from Charlie. As a investor our greatest risk is not temporary loss of return but permanent loss of capital. We have to continuously educate ourself about the risk that exist. Mr. Market, macro econimcs, government policy, corporate governance, moat, etc are all highly visible roadblocks which a retail investor has to look into.
But more dangerous and ever present risk is the investor himself. Behaviorial investing. An investor has to learn more about himself so that he can tailor his portfolio needs according to his personality. The investor need to understand his own bias not to change them but to limit the risk that arise.
Ben Graham "The investor’s chief
problem – and even his worst enemy – is likely to be himself.” "
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