The Process Matters in Investing
Unlike the process of building a body, investing is a very passive act. It is very hard for me to build a body like Kang Kyung-won in a short time, but it is possible to beat Buffett in short-term investment returns. In investing, as risk increases so does the return, so someone who once ranked first in gains is bound to rank first in losses during a downturn.
We often forget risk and easily think we made the right investment just by looking at our returns. (the portfolio of Oh Se-hoon, hailed as the god of investing) But the most important thing in investing is not losing money. However, if you do not increase risk, you cannot increase returns. So Howard Marks defined risk in a different sense. (it is not volatility that matters but the risk of permanent loss)
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