Calculating Risk Foolishly: CRI vs. VA (1/3)

Rule Breaker Investing

The Motley Fool

Investing, Business

4.5 • 928 Ratings

🗓️ 2 March 2016

⏱️ 29 minutes

🔗️ Recording | iTunes | RSS

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Summary

As promised, March is Risk Month here at the RBI Podcast, and today David lays out the structure of his unique 25-point system for quantifying the risk levels of your investments. This is not just a nebulous “high, medium, low” rating; rather, this is a methodical scoring system that you can use yourself to assess the long-term safety of the companies you love.

Transcript

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0:00.0	It's the Rule Breaker Investing Podcast with Motley Full Co-founder David Gardner.
0:07.0	And welcome back to Rule Breaker Investing.
0:12.0	Well, it's March, and March is Risk Month.
0:16.0	Well, not normally.
0:16.8	I'm not sure a lot of people equate March with Risk.
0:19.6	There is some madness in March for some of us.
0:21.7	That might sound a little risky for basketball fans. But no, I don't
0:27.0	think that March should be any more risky than any other month, But for this podcast it is because in our first year
0:36.6	of doing rule breaker investing I wanted to get to this subject and I'm happy to say we
0:40.3	started last July so I'm happy to say we're gonna do that this month.
0:43.8	The next three podcasts including this one are going to be on the subject of assessing
0:48.3	risk in your investing and your investments.
0:51.4	Now for some of you that probably sounds I hope interesting
0:55.2	because you're curious what makes a stock risky. Why is one stock twice as risky as
1:02.0	another?
1:02.9	These kinds of questions for investors
1:05.8	can be very interesting, especially
1:07.5	because I think a lot of the previous answers offered
1:10.7	by history are kind of boring.
1:12.3	We've talked about this in the past in this
1:14.0	podcast but I'm not satisfied by people saying a stock is medium risk or even
1:19.1	low to medium. I don't really know what that means. There's no real scale. It just sounds
	...

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