Most risk is in price. If the cost of a security is low enough, investors reduce the risk of ownership. They can still lose; the price can go lower, the security can fall out of bed. Taleb’s Turkey.
All risk arises from ignoring one of more of the six habits which the Monday Morning Program promotes. To eliminate risk entirely and still outperform over 90% of portfolios, including professionally managed ones, investors simply need to have the six habits. (1. Save, 2. Do it yourself, 3. Invest in an entire US market (don’t pick stocks), 4. Buy and hold (don’t trade), 5. Adjust to your asset allocation when it changes by market movement, 6. Avoid complexity)
All investment mistakes that anyone ever made arose from ignoring one or more of the six habits. The same is true about all future investment mistakes.
And the expense ratio (management cost divided by portfolio value)? Zero dollars, 15 minutes per week!
Wall Street does not like investors with these habits. These investors win; Wall Street makes less, much less!
Some of our members spend more time than 15 minutes per week, often much more, because they enjoy it. Few make more in the long run.
With the habits of the Monday morning program, luck hardly matters.