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The Chinese word for risk consists of two symbols as characters. 风险 One denotes ‘danger’ and the other denotes ‘opportunity’. We believe in every unpleasant external financial situation there is a hidden opportunity. (Our logo represents this fact in the form of a yin yang) Risk is an inevitable element in any wealth creation pursuit and hence it is something to be embraced instead of being shunned or despised . Indeed, it is that variable which needs constant and continuous maneuvering to sustain wealth and progress forward, leaving behind the risk shunners and mismanagers , righteously behind. In financial nomenclature, risk is measured by "Beta" which quite interestingly measures only volatility in prices and does not necessarily mean loss of invested capital . A stock or a security with a high beta is not necessarily poised to result in permanent wealth destruction but is only less predictable on expected outcome. It would therefore be wise to imbibe, accept and accommodate such volatility as a perennial opportunity to periodically exercise our risk measurement and management capabilities instead of perceiving it as an avoidable that shall be detrimental to our objectives.

We at Oakwhite, would like to differentiate risk tolerance from risk perception. The two terminologies though used interchangeably differ fundamentally and have to be handled differently in the context of wealth management.

Risk tolerance refers to the amount of risk an investor can afford to take given his financial strength and background and readiness towards meeting his financial goals.

Risk perception refers to the optimism and anxiety levels the investor manifests while navigating uncertain financial markets.

We have developed a proprietary questionnaire to assess both of these aspects individually and align them to the return expectation of the client.

Alignment and synchronization of risk tolerance, risk perception and return expectations is cruciall to having a pleasant wealth creating journey.

  • "Wealth is the ability to fully experience life"

    Henry David Thoreau

  • "Knowing what you don't know is more useful than being brilliant"

    Charlie Munger

  • "If one does not know to which port one is sailing, no wind is favorable"

    Lucius Annaeus Seneca

  • "Wide diversification is only required when investors do not understand what they are doing"

    Warren Buffet

  • "The stock market is filled with individuals who know the price of everything, but the value of nothing"

    Phillip Fisher

  • "When money realizes that it is in good hands, it wants to stay and multiply in those hands"

    Idowu Koyenikan

  • "You give but little when you give of your possessions. It is when you give of yourself that you truly give"

    Khalil Gibran