Banach Wealth Management May 01, 2009 Letter Draft Guide Ch. 7, 8, & 9
Section IV. Investment Risk Categories
Chapter 7 Fundamentals
Operating Risks & Uncertainties
Key Points
- Asset classes - unique operating risk profiles
- Business models - constructs to evaluate
asset operations - General & specific factors - asset quantitative
risk insights - Asset class - operating risk & return checklist
Chapter 8
Market Transaction Risks
Key Points
- Economic Basics - supply and demand risks
- Historic asset price data provides factual insights
- Market emotions increase transaction risks
- Agents - supporting transaction actors are not free
- Benchmarks are needed for score keeping
Chapter 9
Data Risk or Information Content?
Key Points
- Questions should lead to relevant investment data
- Separate facts from opinions
- Strive to think and act independently