Livewire Exclusive – Two asymmetric opportunities
It’s difficult to make predictions, especially about the future. Like many investors, Gopi Karunakaran from Ardea Investment Management once thought that investing meant having high levels of confidence about the future. However, he very quickly learned the truth; “uncertainty is always there, you can’t get away from it.”
So, how do great investors make good decisions if they’re no more certain of the future than the rest of us? Gopi Karunakaran says the key is finding asymmetric opportunities. He explains these as, “situations where the possibility of loss is small relative to the possibility of gain.” Typically, these are due to a market inefficiency of some kind.
To watch the Livewire video click here.