Right Way To Think About Risk
This is not a topic you hear about much in mainstream finance. Even if you understood the efficient frontier and also that risk and reward are probability-based, there is a fundamental difference in our approach to risk that mainstream financial planners don’t bother to even ask. This is about risk tolerance vs. risk affordability.
Raman Venkatesh is the founder of Ten Factorial Rocks. Raman is a ‘Gen X’ corporate executive in his mid 40’s. In addition to having a Ph.D. in engineering, he has worked in almost all continents of the world. Ten Factorial Rocks (TFR) was created to chronicle his journey towards retirement while sharing his views on the absurdities and pitfalls along the way. The name was taken from the mathematical function 10! (ten factorial) which is equal to 10 x 9 x 8 x 7 x 6 x 5 x 4 x 3 x 2 x 1 = 3,628,800.