Capital Preservation for Value Investor

[money]

...

So if you are going to need money in 1 year's time, and the stock price drops 20% you're quite screwed.

I guess the prudent thing to do for money that you will need in 1 year's time should just be kept in the bank or go for a treasury bill that matures in 1 year. It should not be invested in the stockmarket, for you will be forced to sell for a loss if the market tanks