ABSTRACT
This chapter discusses that a shipping investor needs three fundamental things: capital, knowledge, and a cool head. There are two major groups of shipping investors: risk-takers and risk-averse owners. To discover the best mix, the author considers two perspectives: that of the 'risk lover' and that of the 'risk reducer.' Each contract has a distinct risk exposure. In the period market, you have just one customer whom you can study. People have two fundamental tasks: asset play and trading. In a peak market, the shipping investor should define the asset play position for their existing fleet. It is probably better to keep one-fourth of a portfolio in very long positions and another one-fourth in the spot position. The remaining half of the portfolio is the dynamic section that can cover long or spot positions accordingly.
