Of all the investment methods that I’ve researched, no method is better than the risk averse method. The ability to do simple arithmetic is all that is needed. I protect my downside by knowing that I’m purchasing tangible assets at 50% discounts or cash and other liquid investment assets at 90 cents on the dollar. When a risk averse method is used a stock that becomes cheaper simply becomes a better bargain. Seth Klarman is best known for using this investment method and it has served his hedge fund Baupost Group well. The best risk averse investment that I’ve personally been investing in is Enzon Pharmaceuticals. Check out my previous posts on the companies evaluation.

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