Jeremie Teboul: On the hunt for a margin of safety

Producing higher investment returns relative to the average of the world's equity markets is a relatively self-explanatory goal - the objective of doing so without greater risk of loss is much more nuanced. After all, the historical risk of loss cannot be accurately measured because most risks never materialise. As a result, clients tend to look at significant declines in the price of a fund as a proxy for historical risk of loss. Simply looking back at these measures can, however, be misleading in that stockmarket environments are always different. The Japanese equity boom, which pea...