4.5 • 928 Ratings
🗓️ 19 May 2021
⏱️ 73 minutes
🧾️ Download transcript
High risk? Low risk? MEDIUM risk? What does that even mean, and what the heck is risk anyway? Today, we define risk Foolishly and revisit our risk ratings, a system to quantify the long-term risk your companies may face.
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0:00.0 | Risk. A lot of people talk about it, but especially in the investment world, I've never found that talk very satisfying. |
0:07.0 | First of all, how do you, how do I, how do they define risk? What does it even mean to say that's a risky stock? |
0:16.4 | So the definitions are often unclear and then some analysts in the risk section of their stock report will say stuff like medium. |
0:28.1 | You know, as in this is a medium risk stock. |
0:31.3 | What does that mean? |
0:32.3 | Well, about a decade ago I developed a 25-point |
0:35.8 | risk rating system that we've used at Rule Breaker investing ever since and I defined |
0:41.0 | risk. Well at least what that word means to me as an investor and we went on not just to put a word to the riskiness of the stock. |
0:50.0 | You know, not just a word like medium, but to go on to put a number on that |
0:54.8 | stocks risk a number to give you a much more specific understanding and |
0:59.9 | that number is itself based on 25 questions asked of the stock. |
1:06.6 | And you know what? |
1:07.9 | We're gonna cover the whole thing this week. |
1:11.5 | Joined by my two friends Alicia Alfieri and Maria Gallagher, we three are going to teach you the entire system. |
1:18.0 | Help you rate stocks yourself along the very important dynamic of risk. |
1:26.1 | Only on this week's Rule Breaker Investing. |
1:28.4 | It's the Rule Breaker Investing Podcast with Motley Full Co-founder David Gardner. |
1:35.0 | Welcome back to Rule Breaker Investing. |
1:40.0 | Well, it was a busy week last week, especially on this podcast. |
1:43.7 | It was my delight to bring you a road less traveled in 10 and a half chapters, |
1:47.6 | which I started writing at 11 a.m. |
1:49.7 | last Tuesday morning, 9,309 words later. That is by the way a 36 page paper. If you're |
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