Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
Friday, 23 July 2010
Good and Poor Risk-Reward Ratios and their relationships to Expected Return
When the Risk-Reward Ratio is Good:
The Probability of Loss is Lower
The Expected Return is Higher
When the Risk-Reward Ratio is Poor:
The Probability of Loss is Higher
The Expected Return is Lower
http://www.centaur.co.za/investment_methodology/index.html
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