"One important test is the avoidance of 'stumers' with which many investment lists are disfigured.  I mean by this definite mistakes where the fall in value is due not merely to fluctuations, but to an intrinsic loss of capital.  These are in an altogether different category from fluctuating securities, since there is no particular reason to expect a subsequent recovery."  John Maynard Keynes

"The risk that matters most is the risk of permanent loss.”  Howard Marks

“I define risk as the chance of permanent capital loss adjusted for inflation. Volatility, I believe to be just price changes based on market perceptions of risk. Risk does not equal volatility.” Bruce Berkowitz

“When we speak of risk, we are not speaking of share price volatility.  Share price volatility provides us with opportunity.  When we speak of risk we are thinking about exposure to permanent loss of capital.” Chuck Akre

"I cannot promise results to partners.  What I can and do promise is that a) Our investments will be chosen on the basis of value not popularity, b) That we will attempt to bring risk of permanent capital loss (not short term quotational loss) to an absolute minimum by obtaining a wide margin or safety in each commitment and a diversity of commitments; and c) My wife, children and I will virtually have out entire net worth in the partnership."  Warren Buffett, Partnership Letter 1962

"As always, we will forsake the lure of so-called opportunity where the flip side of that coin may result in permanent loss of capital."  Frank Martin

"Greenhaven hates permanent loss." Ed Wachenheim

“Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital and, increasingly relevant today, the permanent loss of purchasing power.” David Iben

"From our perspective, the certainty of capital loss in purchasing power is the very definition of risk." Francois Rochon

“I don’t think most investors fear volatility. In fact, I’ve never heard anyone say, “the prospective return isn’t high enough to warrant bearing all that volatility.” What they fear is the possibility of permanent loss.” Howard Marks

“Given the importance we place on not interrupting the power of compounding, we want our mistakes to be time-value-of-money mistakes and not permanent-loss-of capital ones.” Ira Rothberg

“The manager of one of the world’s biggest hedge funds looked into the CNBC camera the other day and said that risk is the volatility of returns. I would say – many value investors would agree – that risk is the likelihood of the permanent impairment of capital”. Jim Grant

“The possibility of permanent loss is the risk I worry about, Oaktree worry about and every practical investor I know worries about.” Howard Marks

“The chance of gains means very little to us until we have attempted to rule out the probability of permanent loss.” Chris Begg

“The consequences of the stock market revaluing overpriced stocks is often what Graham and I call “permanent capital loss.” Christopher Browne

“Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return.” Charlie Munger

“The risk you should be focused on is if you invest in a business, what are the chances that you’re going to lose your money, that there is going to be a permanent loss.” Bill Ackman

“Avoid permanent impairment of capital.” Jean Marie Eviellard

"Avoiding permanent loss of capital is the number one rule." Bruce Berkowitz

"We have an aversion to investment operations that may lead to permanent loss of capital." Frank Martin

"I am not willing to incur risk of substantial permanent capital loss in seeking to better long term performance." Warren Buffett

"A vey important data point for me is to try to avoid permanent loss of capital."  Mohnish Pabrai

“We define risk as the risk of losing permanent capital. The only way to reduce that risk is to have a margin of safety.  The margin of safety is the difference between price and value.” CT Fitzpatrick

“We always start with, “Is it possible that we could have a permanent capital loss on this investment?” and if the answer is yes, we don’t move to step two. It just kills the idea right there.” Dan Davidowitz

"Underlying our investment values is the principle that the mathematics of compounding demands putting a high priority on avoiding substantial permanent losses. That’s why we’re committed to owning high-quality businesses in industries we understand and can underwrite. It’s also why we put the emphasis we do on risk management." Adam Weiss

"We need volatility from time to time to buy and sell advantageously. Volatility does not bother us. What bothers us is whether we properly evaluate an investment as to the risk that we can permanently lose our money. That is the definition of risk that we start with." Larry Pitkowsky

"We spend an enormous amount of time focused on the downside and the risk of permanent capital loss." Brian Spector

“Because we have our entire financial net worth in the fund, we care more about avoiding large permanent losses, and less about managing small swings in performance.” James Crichton

“It is a tenet of my investment style that, on the subject of common stock investment, maximizing the upside means first and foremost minimizing the downside.  The deleterious effect of permanent capital loss on portfolio returns cannot be overstated.” Michael Burry

"At the most basic level, we’re interested in achieving high long- term returns without taking large risks of permanent loss." Ed Wachenheim

"What I crave are opportunities worthy of large positions that carry a low risk of large permanent loss." Allan Mecham

"In my view, the biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital." Li Lu

“The greatest source of risk as we define risk: The permanent loss of value per share.” Nicholas Sleep