It would be a mistake to think that all the facts that describe a particular investment are or could be known. Not only may questions remain unanswered; all the right questions may not even have been asked. Even if the present could somehow be perfectly understood, most investments are dependent on outcomes that cannot be accurately foreseen. – Seth Klarman – (more…)

Risk is a vital part of thinking about investing, even though you can’t put a number to it. You can’t really start applying many of the ideas in this book without having a good grounding in what makes a risky investment and what makes one investment more or less risky than another. (more…)