Howard Marks: Why Risk Is Perverse | The Acquirer's Multiple®
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1 Articles
Howard Marks: Why Risk Is Perverse | The Acquirer's Multiple®
Risk is often misunderstood, not because it is complicated, but because it defies intuition. As Howard Marks explains in his discussion on the character of risk, “risk is counterintuitive” and “risk is perverse.” The way we perceive risk can often be the exact opposite of reality, leading investors, policymakers, and individuals to miscalculate the dangers they face. Marks illustrates this with an experiment in Drachten, Holland, where traffic s…
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