Investment risk has nothing to do with benchmarks

David Gait | Stewart Investors | 23 August 2018 | 0.50 CE

Investment risk is usually defined with regard to deviation from arbitrary benchmarks. But this definition is at best misleading and at worst, damaging to the efficient allocation of long-term capital. Instead, to future proof portfolios, investors looking to maximise returns should regard risk simply as the risk of losing money and in turn, best manage this risk by taking a long-term time horizon. The Chinese Beve...