Focusing on what can go wrong has long been a mantra of sound investing.
The legendary investor Seth Klarman put it the best in an investor letter –
We are big fans of fear, and in investing it is clearly better to be scared than sorry.
But chances are that even the biggest pessimists among us can have their focus on risk muted by extended periods of generally favourable market conditions.[Read more…] about The Biggest Danger of Investing in Bad Businesses