There are three things that concern me in evaluating the risk of an investment: the chances of losses exceeding a certain percent of my total equity, the chances of earning the required rate of return, and the chances of breaking even on a cash flow basis. Cash break-even is kind of a survival point." (The investment decisions in this company are few, but large in size.)
"There are some projects in the company which I don't think are going to pay off,
and I disagree with the fellows who are running the show. These projects are the risky investments. Also, I never worry about the project return going above the target return. Risk is what might happen when the return is going to be less."