One driver of our investment decision is “the power of negative numbers.” Simply put, on a percentage basis, recouping losses requires greater gains. As such, to avoid needing greater percentage returns needed to make back losses, we strive to limit negative returns in the first place. At the end of the day, risk-adjusted, net returns matter most.

Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.
— Sir John Templeton (AIM13 Letter, April 20, 2010)