Div Tip #7: Risk analysis improves your investing.

Dividend Tips

Conducting risk analysis is an important part of DIY investing – particularly for value investors and Dividend Farmers.  Application of risk matrices, probability, expected costs, and margin of safety are invaluable when assessing the risk of an investment.

These activities require practice, but repetition builds skill and improves the investing process.  Investment risk may be reduced and returns increased over time as proficiency and consistent application take hold and compound – just like dividends.    

"Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety." -- Benjamin Graham