Richard Beddard

Investor, writer, etc.
richard@beddard.net


investing . writing . et cetera

Continually reducing risk

Nothing ventured, nothing gained. But venturing money on poor investments means certain losses.

Thanks for visiting my site.

I'm an optimist. I expect shares in good companies to reward me in years to come, but I recognise those rewards will only come by containing three big risks:

  1. Picking flawed companies
    Investing in businesses run by bandits, hobbled by incompetence and debt, or succumbing to virulent competition.
  2. Paying too much
    Buying shares so popular they're unlikely to earn a good return on the high price of the initial investment.

The flawed company at a high price is worst of all, familiar to all technology bubble veterans. That's because the biggest risk of all is risk #3:

  1. Self delusion
    Raising fantasy, what we imagine about the future, above fact, what we know about companies now.

I manage investment portfolios, principally Share Sleuth, with one objective: To continually reduce risk.