Investment Risk Visualization

Investment Risk Visualization

“Risk is not knowing what you are doing” - Warren Buffett

Uninformed Risk

  1. Cash Deposits
  2. Government Bonds
  3. Corporate Bonds
  4. Property (Physical)
  5. Commodities / Alternatives
  6. "What’s Working Now"
  7. Global Equities Funds (The Great Companies)
  8. Emerging Market Equity Funds
  9. Single Large Cap Share
  10. Single Small Cap Share

Informed Risk

Volatility

  • Global Equities Funds
  • Property (Physical)
  • Emerging Market Equity Funds

Inflation

  • Commodities / Alternatives
  • Corporate Bonds

Loss of Capital

  • Government Bonds
  • Cash Deposits
  • Single Large Cap Share
  • Single Small Cap Share
  • "What’s Working Now"

Context & Practical Advice

Volatility: Consider diversifying across asset classes to manage market swings.

Inflation: Utilize TIPS or commodities as a hedge.

Loss of Capital: Balance your portfolio with safer, low-risk investments.