11 Jun Another Howard Marks’ Memo – Risk Revisited

In thinking about risk, we want to identify the thing that investors worry about and thus demand compensation for bearing… What they fear is the possibility of permanent loss.

Permanent loss is very different from volatility or fluctuation.

Stability leads inevitably to instability

We have two classes of forecasters: Those who don’t know – and those who don’t know they don’t know.

Antifragility concepts reinforce Howard Marks’ views.

Paper: Risk Revisited