--- title: "Meaning & Key Takeaway of: Targeting investment returns leads…" description: "\"Targeting investment returns leads investors to focus on potential upside rather on downside risk ... rather than targeting a desired rate of return, e..." image: "https://sms4smile.com/quotes/i/7f2/seth-klarman-1979_customer_targeting-investment-returns-leads-inves_2809619.png" --- # Targeting investment returns leads investors to focus on… ![“Targeting investment returns leads investors to focus on potential upside rather on downside risk ... rather than targeting a desired rate of return, even an eminently reasonable one, investors should target risk.” quote by Seth Klarman](https://sms4smile.com/quotes/i/7f2/seth-klarman-1979_customer_targeting-investment-returns-leads-inves_2809619.png) [Download](https://sms4smile.com/quotes/i/7f2/seth-klarman-1979_customer_targeting-investment-returns-leads-inves_2809619.png) [Open image](https://sms4smile.com/quotes/i/7f2/seth-klarman-1979_customer_targeting-investment-returns-leads-inves_2809619.png) > “Targeting investment returns leads investors to focus on potential upside rather on downside risk ... rather than targeting a desired rate of return, even an eminently reasonable one, investors should target risk.” [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Investors should prioritize managing risk over chasing high returns, focusing on downside protection. **In simple terms:** Target risk, not just returns. Key Takeaway Focus on risk mitigation. Themes investment risk management financial strategy Mood cautious analytical Type financial educational When to use this quote - asset allocation - hedging - financial planning Key Concepts risk‑adjusted returns portfolio safety Questions to Reflect On - How can you balance risk and reward? - What tools measure downside risk effectively? A Different Perspective Risk‑only focus may limit upside. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Focus](https://sms4smile.com/quotes/about/focus/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investment](https://sms4smile.com/quotes/about/investment/) [Investment Returns](https://sms4smile.com/quotes/about/investment-returns-468202/) [Investors](https://sms4smile.com/quotes/about/investors/) [Investors Target](https://sms4smile.com/quotes/about/investors-target-3509775/) [Rate](https://sms4smile.com/quotes/about/rate/) [Reasonable](https://sms4smile.com/quotes/about/reasonable/) [Return](https://sms4smile.com/quotes/about/return/) [Risk](https://sms4smile.com/quotes/about/risk/) [Risk Targeting](https://sms4smile.com/quotes/about/risk-targeting-3509773/) [Should](https://sms4smile.com/quotes/about/should/) [Target](https://sms4smile.com/quotes/about/target/) [Target Risk](https://sms4smile.com/quotes/about/target-risk-3509774/) [Targeting Investment](https://sms4smile.com/quotes/about/targeting-investment-3509772/) ## Related quotes > [Hedge funds try to produce above-average investment returns using tactics ranging from traditional stock-picking to complex derivative and arbitrage plays. 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Investors should never trust them.](https://sms4smile.com/quotes/seth-klarman/ratings-agencies-are-highly-conflicted-unimaginative-dupes-they-are/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Ultimately, nothing should be more important to investors than the ability to sleep soundly at night.](https://sms4smile.com/quotes/seth-klarman/ultimately-nothing-should-be-more-important-to-investors-than-the/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Because investors are not usually penalized for adhering to conventional practices, doing so is the less professionally risky strategy, even though it virtually guarantees…](https://sms4smile.com/quotes/seth-klarman/because-investors-are-not-usually-penalized-for-adhering-to/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) ## More by Seth Klarman > [Unlike return, however, risk is no more quantifiable at the end of an investment that it was at its beginning. Risk simply cannot be…](https://sms4smile.com/quotes/seth-klarman/unlike-return-however-risk-is-no-more-quantifiable-at-the-end-of-an/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Because investors are not usually penalized for adhering to conventional practices, doing so is the less professionally risky strategy, even though it virtually guarantees…](https://sms4smile.com/quotes/seth-klarman/because-investors-are-not-usually-penalized-for-adhering-to/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Value investing is risk aversion.](https://sms4smile.com/quotes/seth-klarman/value-investing-is-risk-aversion/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Be focused on process and not outcome](https://sms4smile.com/quotes/seth-klarman/be-focused-on-process-and-not-outcome/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [There is an old saying, "How did you go bankrupt?" 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