how should we manage the risk of a fall though? should we have...

how should we manage the risk of a fall though?
should we have some stops in place?

@hemphill ,

By "stops", I assume you mean "stop losses".

I personally don't believe in the use of stop losses.

I think they are largely constructs of the stockbroking industry, designed to create additional market activity and, hence, more brokerage commission for stockbrokers.

What I do, instead, is I make an assessment of the intrinsic value of a business - based on its Free Cash Flows - and if the market value of the business is sufficiently below my assessment of intrinsic value, I buy it.

And then I hold it until it reaches my valuation.

I am agnostic about the exact path the share prices takes as it moves from the price at which I purchased it, to the price at which I think it is fully valued.

In that light, I feel no need to take any action to mitigate the risk of a fall.