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Lawrence Ross
Jonathan Gottesman
Frances Dimou
Georgia Kapogianis

Address
BMO Nesbitt Burns
1 First Canadian Place
38th floor, P.O. Box 150
Toronto, ON
M5X 1H3
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Our Approach To Risk

Our Approach To Risk

Managing Risk

Risk is the permanent loss of capital, which chiefly occurs when people:
  1. Are overconcentrated in one position or industry and suffer a permanent decline.
  2. Have inadequate liquidity and need to withdraw money from their portfolio when equities are undervalued.
  3. Have emotional, knee-jerk reactions that disrupt a long-term plan.
To combat the potential for discomfort and loss, we:
  • Maintain disciplined diversification so that portfolios are not overweight in any one position/sector
  • Plan proactively for the bad days.
  • Are clear about how much liquidity you might need in the future so we are not forced to sell a good position at a bad price.
  • Coach you to consider the possibility of adversity such as a job loss, temporary or permanent disability, untimely death, etc.
  • Hold non-equity, high-quality, liquid securities and tactical cash as a buffer so you have cash to buy equities at low prices.
  • Hold fixed income instruments that can protect you during downturns.
  • Talk about things annually. Get your risk tolerance out on the table.
  • Only invest where we have strong convictions. We look at multiple variables and the mathematics behind each investment. We ask, will it benefit the portfolio? Can it harm it?
  • Educate you and constantly remind you of your long-term progress, which helps you maintain balance and perspective.