Can u explain to me how risk may affect a managers investment decision?
I assume you are asking how risk may affect an investment manager’s choices. There are only three choices: Buy, Sell, or Hold. Risk ASSESSMENT/ABATEMENT is the only real skill a good manager has. For me, I try to manage risk by offsetting it through diversification, buying lower leveraged companies, and taking profits when I have them. I tend to only buy on weakness, and trade on volatility. I hold strong dividends. Another manager may have done the opposite, as no two will completely agree.
