Michael Mauboussin: The Hard Truth About Drawdowns | The Acquirer's Multiple®
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Michael Mauboussin: The Hard Truth About Drawdowns | The Acquirer's Multiple®
Let’s cut to the chase: if you can’t stomach big drawdowns, you shouldn’t be investing in stocks. As Michael Mauboussin and Dan Callahan put it in their latest Morgan Stanley report, Drawdowns and Recoveries, Charlie Munger’s take on this is brutally clear: “I think it’s in the nature of long-term shareholding with the normal vicissitudes in worldly outcomes and in markets that the long-term holder has his quoted value of his stock go down by sa…
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