“The essence of investment management is the management of risks……not the management of returns” –Ben Graham The current investing environment may be classified as “increasing

Interest rates are like gravity in determining the overall stock and bond market valuations. A high interest rate increases the gravitational pull-on valuation. Conversely a

Growth Expectations Often Overly Optimistic The analysis of historical growth rates is best illustrated by the McKinsey book “Valuation.” McKinsey categorized all companies into 1

Adequate Diversification = Insurance A poor outcome may occur at the individual security level even though an adequate margin of safety appeared to exist. But

INFLATION RISK Inflation is too much money chasing too few things. Inflation results in the decline of purchasing power of a currency over time and