"The essence of investment management is the management of risks, not the management of returns."
— Benjamin Graham
The Essence Of Investment Management Is
The essence of investment management is the management of risks, not the management of returns.
About this quote
From Security Analysis (1934), the foundational text of value investing that Graham coauthored with David Dodd. Graham argued that professional money management is fundamentally a risk discipline, not a return-chasing exercise. The manager's job is to define the range of bad outcomes and keep the portfolio out of them; satisfactory returns follow as a consequence.
Source
Security Analysis, Chapter 4 (1934)
