---
title: "1 Downside Risk Quotes By Joel Greenblatt"
description: "1 Downside Risk quotes by Joel Greenblatt. Plus more from Joel Greenblatt and more Downside Risk sayings from other authors."
image: "https://sms4smile.com/quotes/i/6d7/joel-greenblatt-21588_alternatives_so-one-way-to-create-an-attractive-risk_2693771.png"
---

> [So one way to create an attractive risk/reward situation is to limit downside risk severely by investing in situations that have a large margin of safety. The upside, while still difficult to quantify, will usually take care of itself. In…](https://sms4smile.com/quotes/joel-greenblatt/so-one-way-to-create-an-attractive-risk-reward-situation-is-to-limit/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

[Image](https://sms4smile.com/quotes/i/6d7/joel-greenblatt-21588_alternatives_so-one-way-to-create-an-attractive-risk_2693771.png)

## More by Joel Greenblatt

> [Figure out what something is worth and pay a lot less.](https://sms4smile.com/quotes/joel-greenblatt/figure-out-what-something-is-worth-and-pay-a-lot-less/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

> [We are busy surviving, herding, fixating on what just happened, and being overconfident!](https://sms4smile.com/quotes/joel-greenblatt/we-are-busy-surviving-herding-fixating-on-what-just-happened-and/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

> [ There's a clarity that comes with great ideas: You can \[easily and simply\] explain why something's a great business, how and why it's cheap,… ](https://sms4smile.com/quotes/joel-greenblatt/there-s-a-clarity-that-comes-with-great-ideas-you-can-easily-and/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

> [The secret to investing is to figure out the value of something - and then pay a lot less.](https://sms4smile.com/quotes/joel-greenblatt/the-secret-to-investing-is-to-figure-out-the-value-of-something-and/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

> [Remember, it’s the quality of your ideas not the quantity that will result in the big money.](https://sms4smile.com/quotes/joel-greenblatt/remember-it-s-the-quality-of-your-ideas-not-the-quantity-that-will/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

> [“Perhaps, since the measurement of potential gain and loss from a particular stock is so subjective, it is easier, if you are a professional…](https://sms4smile.com/quotes/joel-greenblatt/perhaps-since-the-measurement-of-potential-gain-and-loss-from-a/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

> [Here is part of the tradeoff with diversification. You must be diversified enough to survive bad times or bad luck so that skill and…](https://sms4smile.com/quotes/joel-greenblatt/here-is-part-of-the-tradeoff-with-diversification-you-must-be/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

> [It just seems logical that sticking to investing in only a small number of companies that you understand well, rather than moving down the…](https://sms4smile.com/quotes/joel-greenblatt/it-just-seems-logical-that-sticking-to-investing-in-only-a-small/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

> [I wait until an investment idea is so good, it hits me over the head like an anvil.](https://sms4smile.com/quotes/joel-greenblatt/i-wait-until-an-investment-idea-is-so-good-it-hits-me-over-the-head/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

> [“When thinking about risk, rather than making things unnecessarily complicated, there are really two main things you should want to know about an investment…](https://sms4smile.com/quotes/joel-greenblatt/when-thinking-about-risk-rather-than-making-things-unnecessarily/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

> [“Graham figured that always using the margin of safety principle when deciding whether to purchase shares of a business from a crazy partner like…](https://sms4smile.com/quotes/joel-greenblatt/graham-figured-that-always-using-the-margin-of-safety-principle-when/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

> [I think the exercise of trying to figure out how to simplify concepts has been incredibly helpful to me over the last 13 years…](https://sms4smile.com/quotes/joel-greenblatt/i-think-the-exercise-of-trying-to-figure-out-how-to-simplify-concepts/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

> [Choosing individual stocks without any idea of what you're looking for is like running through a dynamite factory with a burning match. You may…](https://sms4smile.com/quotes/joel-greenblatt/choosing-individual-stocks-without-any-idea-of-what-you-re-looking/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

> [If you spend your energies looking for and analysing situations not closely followed by other informed investors, your chance of finding bargains greatly increases.](https://sms4smile.com/quotes/joel-greenblatt/if-you-spend-your-energies-looking-for-and-analysing-situations-not/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

> [I still believe that for good business analysts a concentrated portfolio is a good strategy combined with a long term horizon. Once again, the…](https://sms4smile.com/quotes/joel-greenblatt/i-still-believe-that-for-good-business-analysts-a-concentrated/)

[Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/)

```json
{
    "@context": "https://schema.org",
    "@graph": [
        {
            "@type": "ItemList",
            "@id": "https://sms4smile.com/quotes/about/downside-risk/joel-greenblatt/#itemlist",
            "name": "1 Downside Risk Quotes By Joel Greenblatt",
            "numberOfItems": 1,
            "itemListElement": [
                {
                    "@type": "ListItem",
                    "position": 1,
                    "item": {
                        "@type": "Quotation",
                        "text": "So one way to create an attractive risk/reward situation is to limit downside risk severely by investing in situations that have a large margin of safety. The upside, while still difficult to quantify, will usually take care of itself. In other words, look down, not up, when making your initial investment decision. If you don’t lose money, most of the remaining alternatives are good ones.",
                        "creator": {
                            "@type": "Person",
                            "name": "Joel Greenblatt"
                        },
                        "url": "https://sms4smile.com/quotes/joel-greenblatt/so-one-way-to-create-an-attractive-risk-reward-situation-is-to-limit/",
                        "image": {
                            "@type": "ImageObject",
                            "@id": "https://sms4smile.com/quotes/i/6d7/joel-greenblatt-21588_alternatives_so-one-way-to-create-an-attractive-risk_2693771.png",
                            "contentUrl": "https://sms4smile.com/quotes/i/6d7/joel-greenblatt-21588_alternatives_so-one-way-to-create-an-attractive-risk_2693771.png",
                            "url": "https://sms4smile.com/quotes/i/6d7/joel-greenblatt-21588_alternatives_so-one-way-to-create-an-attractive-risk_2693771.png",
                            "width": 1080,
                            "height": 1080,
                            "caption": "“So one way to create an attractive risk/reward situation is to limit downside risk severely by investing in…” — Joel Greenblatt",
                            "creditText": "SMS4Smile Quotes",
                            "creator": {
                                "@id": "https://sms4smile.com/quotes/#organization"
                            }
                        }
                    }
                }
            ]
        },
        {
            "@type": "CollectionPage",
            "@id": "https://sms4smile.com/quotes/about/downside-risk/joel-greenblatt/#webpage",
            "url": "https://sms4smile.com/quotes/about/downside-risk/joel-greenblatt/",
            "name": "Downside Risk Quotes by Joel Greenblatt",
            "isPartOf": {
                "@id": "https://sms4smile.com/quotes/#website"
            },
            "mainEntity": {
                "@id": "https://sms4smile.com/quotes/about/downside-risk/joel-greenblatt/#itemlist"
            },
            "primaryImageOfPage": {
                "@id": "https://sms4smile.com/quotes/i/6d7/joel-greenblatt-21588_alternatives_so-one-way-to-create-an-attractive-risk_2693771.png"
            },
            "description": "1 Downside Risk quotes by Joel Greenblatt. Plus more from Joel Greenblatt and more Downside Risk sayings from other authors.",
            "breadcrumb": {
                "@id": "https://sms4smile.com/quotes/about/downside-risk/joel-greenblatt/#breadcrumb"
            }
        },
        {
            "@type": "BreadcrumbList",
            "@id": "https://sms4smile.com/quotes/about/downside-risk/joel-greenblatt/#breadcrumb",
            "itemListElement": [
                {
                    "@type": "ListItem",
                    "position": 1,
                    "name": "Home",
                    "item": "https://sms4smile.com/"
                },
                {
                    "@type": "ListItem",
                    "position": 2,
                    "name": "Quotes",
                    "item": "https://sms4smile.com/quotes/"
                },
                {
                    "@type": "ListItem",
                    "position": 3,
                    "name": "Topics",
                    "item": "https://sms4smile.com/quotes/categories/"
                },
                {
                    "@type": "ListItem",
                    "position": 4,
                    "name": "Downside Risk",
                    "item": "https://sms4smile.com/quotes/about/downside-risk/"
                },
                {
                    "@type": "ListItem",
                    "position": 5,
                    "name": "Joel Greenblatt",
                    "item": "https://sms4smile.com/quotes/about/downside-risk/joel-greenblatt/"
                }
            ]
        },
        {
            "@type": "WebSite",
            "@id": "https://sms4smile.com/quotes/#website",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "publisher": {
                "@id": "https://sms4smile.com/quotes/#organization"
            }
        },
        {
            "@type": "Organization",
            "@id": "https://sms4smile.com/quotes/#organization",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "logo": {
                "@type": "ImageObject",
                "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png",
                "width": 512,
                "height": 512
            }
        }
    ]
}
```
