Monday, January 12, 2009

Risk Management is a Strength








Whether buying stocks or investing in projects, risks must be understood, accepted, and mitigated. However, no matter how many controls are in place, some risks (see below) are impossible to see. ...

... "Addressing risk, even in companies and stocks we like, is not a sign of weakness, but of strength. It's what every investor should do when considering buying a stock. Satyam is a terrible, disappointing situation. Despite unease about management, it seems to me the full extent of the ugly truth would have been very difficult, if not impossible, to see ahead of time. But let's not give up on the quest for truth, even while remaining aware that sometimes we just can't foresee certain outcomes. " ...


Via Motley Fool: Satyam

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