Conclusions (4.5)

For the long term investor, many of the above mentioned risks are not of much interest.  They have an impact on the Wall Street fashion show, but not on the long term valuations of companies.  Some of them, however, reflect fundamental problems with the ability of companies to earn money and pass those earnings on to shareholders.  Investors that follow an indexing approach are especially insensitive to these issues since most of these risks tend to be company specific.


[ Back | Contents | Next ]