John Hempton on risk management and position sizing

The size of the position has to be determined by what you can lose because it's the fat ugly tails that kill you in this business.  It's not that I don't like to win.  It's that I hate losing.  "Hate losing" is necessary for survival.  I do like to win.  Believe me, I like to win.  The business is built around taking care of the losses.

~ John Hempton, interview, HedgeD, With A Capital "D", March 22, 2023