--- title: "Meaning & Key Takeaway of: We continue to adhere to a common-sense…" description: "\"We continue to adhere to a common-sense view of risk - how much we can lose and the probability of losing it. While this perspective may seem over simp..." image: "https://sms4smile.com/quotes/i/9b3/seth-klarman-1979_believe_we-continue-to-adhere-to-a-common-sense_592811.png" --- # We continue to adhere to a common-sense view of risk - how… ![“We continue to adhere to a common-sense view of risk - how much we can lose and the probability of losing it. While this perspective may seem over simplisticor even hopelessly outdated, we believe it provides a vital clarity about the true risks in investing.” quote by Seth Klarman](https://sms4smile.com/quotes/i/9b3/seth-klarman-1979_believe_we-continue-to-adhere-to-a-common-sense_592811.png) [Download](https://sms4smile.com/quotes/i/9b3/seth-klarman-1979_believe_we-continue-to-adhere-to-a-common-sense_592811.png) [Open image](https://sms4smile.com/quotes/i/9b3/seth-klarman-1979_believe_we-continue-to-adhere-to-a-common-sense_592811.png) > “We continue to adhere to a common-sense view of risk - how much we can lose and the probability of losing it. While this perspective may seem over simplisticor even hopelessly outdated, we believe it provides a vital clarity about the true risks in investing.” [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 focus on potential loss and probability, a simplistic view that still offers clear insight into true investment risk. **In simple terms:** Simple loss‑probability view clarifies risk. Key Takeaway Use clear loss limits. Themes risk management investment simplicity clarity Mood analytical pragmatic Type financial educational When to use this quote - portfolio construction - financial planning - risk assessment Key Concepts probability theory behavioral finance Questions to Reflect On - Do you rely on simple metrics? - How can you incorporate deeper analysis? A Different Perspective Oversimplification may ignore complex market dynamics. ★ ★ ★ ★ ★ No ratings yet [Clarity](https://sms4smile.com/quotes/about/clarity/) [Common sense](https://sms4smile.com/quotes/about/common-sense/) [Customer](https://sms4smile.com/quotes/about/customer/) [Investing](https://sms4smile.com/quotes/about/investing/) [Perspective](https://sms4smile.com/quotes/about/perspective/) [Probability](https://sms4smile.com/quotes/about/probability/) [Risk](https://sms4smile.com/quotes/about/risk/) ## Related quotes > [My outlook on life is to be true. To take risks. To love the shadows as well as the light. To find your task.…](https://sms4smile.com/quotes/juliette-binoche/my-outlook-on-life-is-to-be-true-to-take-risks-to-love-the-shadows-as/) [Juliette Binoche](https://sms4smile.com/quotes/author/juliette-binoche/) > [I wonder if one can view risk like a drug, beneficial to the organism in the proper dose. 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Follow the…](https://sms4smile.com/quotes/h-jackson-brown-jr/instruction-for-life-take-into-account-that-great-love-and-great/) [H. Jackson Brown, Jr](https://sms4smile.com/quotes/author/h-jackson-brown-jr/) > [Rather, risk is a perception in each investor's mind that results from analysis of the probability and amount of potential loss from an investment.…](https://sms4smile.com/quotes/seth-klarman/rather-risk-is-a-perception-in-each-investor-s-mind-that-results-from/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Gerry Fialka's annual PXL THIS is a reliably surprising and seductive round-up of recent work achieved with the PXL 2000 camera. This humble outdated…](https://sms4smile.com/quotes/michael-almereyda/gerry-fialka-s-annual-pxl-this-is-a-reliably-surprising-and-seductive/) Michael Almereyda ## 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?" And the answer is, "Gradually, and then suddenly." The impending fiscal crisis in the…](https://sms4smile.com/quotes/seth-klarman/there-is-an-old-saying-how-did-you-go-bankrupt-and-the-answer-is/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [In a rising market, everyone makes money and a value philosophy is unnecessary. 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It is an, with an ongoing need for judgment, refinement, patience,…](https://sms4smile.com/quotes/seth-klarman/it-is-important-to-remember-that-value-investing-is-not-a-perfect/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Value investing is at its core the marriage of a contrarian streak and a calculator.](https://sms4smile.com/quotes/seth-klarman/value-investing-is-at-its-core-the-marriage-of-a-contrarian-streak/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [The avoidance of loss is the surest way to ensure a profitable outcome.](https://sms4smile.com/quotes/seth-klarman/the-avoidance-of-loss-is-the-surest-way-to-ensure-a-profitable-outcome/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Do not suffer interim losses, relish and appreciate them](https://sms4smile.com/quotes/seth-klarman/do-not-suffer-interim-losses-relish-and-appreciate-them/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Ratings agencies are highly conflicted, unimaginative dupes. They are blissfully unaware of adverse selection and moral hazard. 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/) > [It is crucial to have a strategy in place before problems hit, precisely because no one can accurately predict the future direction of the…](https://sms4smile.com/quotes/seth-klarman/it-is-crucial-to-have-a-strategy-in-place-before-problems-hit/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) [Explore all 193 Seth Klarman quotes ](https://sms4smile.com/quotes/author/seth-klarman/) ## More Believe quotes > [I actually think acting is a form of self-hypnosis. You have to be hyper, hyper aware of what's going on around you. 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He's going…](https://sms4smile.com/quotes/joel-osteen/resist-discouragement-by-speaking-his-word-over-your-future-keep/) [Joel Osteen](https://sms4smile.com/quotes/author/joel-osteen/) > [I can't believe that I'm sitting in meetings with Steven Spielberg, Tom Hanks, and Annette Bening. I want to take on that responsibility to…](https://sms4smile.com/quotes/roger-ross-williams/i-can-t-believe-that-i-m-sitting-in-meetings-with-steven-spielberg/) [Roger Ross Williams](https://sms4smile.com/quotes/author/roger-ross-williams/) > [There is no such word as item girl in the dictionary. People have created this word and I don't believe that I am an…](https://sms4smile.com/quotes/shefali-zariwala/there-is-no-such-word-as-item-girl-in-the-dictionary-people-have/) [Shefali Zariwala](https://sms4smile.com/quotes/author/shefali-zariwala/) > [I understand that it's the music that keeps me alive... That's my lifeblood. And to give that up for, like, the TV, the cars,…](https://sms4smile.com/quotes/bruce-springsteen/i-understand-that-it-s-the-music-that-keeps-me-alive-that-s-my/) [Bruce Springsteen](https://sms4smile.com/quotes/author/bruce-springsteen/) > [I don't really like too much credit. I know nobody's going to believe this, but I'd rather be able to score goals and nobody…](https://sms4smile.com/quotes/bradley-wright-phillips/i-don-t-really-like-too-much-credit-i-know-nobody-s-going-to-believe/) [Bradley Wright-Phillips](https://sms4smile.com/quotes/author/bradley-wright-phillips/) > [“What I have a problem with is not so much religion or god, but faith. When you say you believe something in your heart…](https://sms4smile.com/quotes/penn-jillette/what-i-have-a-problem-with-is-not-so-much-religion-or-god-but-faith/) [Penn Jillette](https://sms4smile.com/quotes/author/penn-jillette/) > [Bush reiterated his stand to conservatives opposing his decision on stem cell research. He said today he believes life begins at conception and ends…](https://sms4smile.com/quotes/jay-leno/bush-reiterated-his-stand-to-conservatives-opposing-his-decision-on/) [Jay Leno](https://sms4smile.com/quotes/author/jay-leno/) > [Never underestimate the power of the human mind to believe what it wants to believe, no matter the conflicting evidence.](https://sms4smile.com/quotes/brian-herbert/never-underestimate-the-power-of-the-human-mind-to-believe-what-it/) [Brian Herbert](https://sms4smile.com/quotes/author/brian-herbert/) > [To believe in love, to be ready to give up anything for it, to be willing to risk your life for it, is the…](https://sms4smile.com/quotes/leonardo-dicaprio/to-believe-in-love-to-be-ready-to-give-up-anything-for-it-to-be/) [Leonardo DiCaprio](https://sms4smile.com/quotes/author/leonardo-dicaprio/) > [That's why I don't generally talk about endorsements because I don't believe we have to tell people who to vote for.](https://sms4smile.com/quotes/martin-luther-king-iii/that-s-why-i-don-t-generally-talk-about-endorsements-because-i-don-t/) [Martin Luther King III](https://sms4smile.com/quotes/author/martin-luther-king-iii/) > [Mankind have been slow to believe that order reigns in the universe-that the world is a cosmos and a chaos.](https://sms4smile.com/quotes/james-a-garfield/mankind-have-been-slow-to-believe-that-order-reigns-in-the-universe/) [James A. Garfield](https://sms4smile.com/quotes/author/james-a-garfield/) > [We instantly believe everything we think. Isn't that insane? It's good for us to explore the depravity of our minds, so we know we…](https://sms4smile.com/quotes/krishna-das/we-instantly-believe-everything-we-think-isn-t-that-insane-it-s-good/) [Krishna Das](https://sms4smile.com/quotes/author/krishna-das/) Browse all 47,704 Believe quotes ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "We continue to adhere to a common-sense view of risk - how much we can lose and the probability of losing it. 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