Value investing is risk aversion.

We don't deal in absolutes. We deal in probabilities.

Investors need to pick their poison: Either make more money when times are good and have a really ugly year every so often, or protect on the downside and don't be at the party so long when things are good.

A value strategy is of little use to the impatient investor since it usually takes time to pay off.

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. If an exploratory oil well proves to be a dry hole, it is called risky. If a bond defaults or a stock plunges in price, they are called risky. But if the well is a gusher, the bond matures on schedule, and the stock rallies strongly, can we say they weren't risky when the investment after it is concluded than was known when it was made.

The cost of performing well in bad times can be relative underperformance in good times.

It is crucial in a sound investment process to search a mile wide than a mile deep with they find something - also.. never stop digging for information.