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GRAIL'S INVESTMENT PHILOSOPHY

The consistency created by competitive advantage generates greater investment certainty

RISK AND RETURN

When it comes to stock markets there are many misconceptions about risk and return, some of which are described in the GEMS section. Of course, safety is particularly needed when knowledge and experience is in short supply. In fact, Warren Buffet correctly called it when he defined risk as not knowing what you are doing.

The counter-argument of this is surely that knowledge not only reduces risk, but is able to generate very high returns, such as those of Warren Buffet himself, Peter Lynch, Martin Zweig, Benjamin Graham and other Wall Street legends.

The Ultra Alpha Portfolio, which is a buy-and-hold research portfolio, was put-together on 29 December 2017. In these 31 months the portfolio holding 91 stocks, has a per annum growth of over 90 percent. This is because of the unique methods developed into the Grail Equity Market Management System (GEMS). The second chart shows that the portfolio risk profile sconsiderable less that the S&P500 Index, or the market risk. Thus the conclusion is that the higher the return is the lower the risks are.