{"id":1151,"date":"2024-07-12T13:31:41","date_gmt":"2024-07-12T13:31:41","guid":{"rendered":"https:\/\/cedcapital.in\/?p=1151"},"modified":"2024-07-12T13:31:41","modified_gmt":"2024-07-12T13:31:41","slug":"return-is-visible-risk-is-not","status":"publish","type":"post","link":"https:\/\/cedcapital.in\/?p=1151","title":{"rendered":"Return is visible. Risk is not"},"content":{"rendered":"<p><span style=\"font-family: tahoma, arial, helvetica, sans-serif; font-size: 14pt;\">Unlike investment return, there are no full proof quantitative measures of investment risk. Risk can only be qualitatively judged. It\u2019s like driving a vehicle. One can choose between safe and rash driving. Driving at 100 kmph can be both rash and safe depending on type of vehicle, road and traffic. Similarly, a 20% return can be both safe and risky depending on the buying price. An expensive buy can get more expensive and generate that 20% return. At the same time a cheaper stock can get reasonably priced and generate 20% return. Former is risky, latter is less so.<\/span><\/p>\n<p><span style=\"font-family: tahoma, arial, helvetica, sans-serif; font-size: 14pt;\">Assessment of investment performance is incomplete if the focus is only on returns and not risks. The best way to reduce investment risk is to invest within one\u2019s <em>circle of competence<\/em> and <em>not to overpay<\/em>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlike investment return, there are no full proof quantitative measures of investment risk. Risk can only be qualitatively judged. It\u2019s like driving a vehicle. One can choose between safe and rash driving. Driving at 100 kmph can be both rash and safe depending on type of vehicle, road and traffic. Similarly, a 20% return can [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,23],"tags":[],"class_list":["post-1151","post","type-post","status-publish","format-standard","hentry","category-investment-process","category-performance-evaluation"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/posts\/1151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cedcapital.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1151"}],"version-history":[{"count":1,"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/posts\/1151\/revisions"}],"predecessor-version":[{"id":1152,"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/posts\/1151\/revisions\/1152"}],"wp:attachment":[{"href":"https:\/\/cedcapital.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cedcapital.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cedcapital.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}