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Rule Breaker Investing

Calculating Risk Foolishly, Vol. 3: KNSL vs. CHWY

Rule Breaker Investing

The Motley Fool

Business, Investing, Invest, Rulebreaker, Stocks, Company, Growth, Stockmarket, Fool, Foolish

4.5928 Ratings

🗓️ 24 January 2024

⏱️ 67 minutes

🧾️ Download transcript

Summary

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.

Companies Discussed: KNSL, CHWY

Host: David Gardner
Guests: Emily Flippen, Andy Cross
Producer: Rick Engdahl

Transcript

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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

0:06.4

that talk very satisfying. 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?

0:18.0

The definitions are often unclear and then some analysts in the risk section of their stock report will say

0:24.6

stuff like medium as in this is a medium risk stock what does that mean well

0:32.3

more than a decade ago, I developed a 25-point risk rating system that I've used as a rulebreaker

0:37.4

investor ever since.

0:39.4

I defined risk.

0:40.7

Well, at least what that word means to me is an investor and we went on not just

0:44.9

to put a word to the riskiness of the stock, not just a word like medium, but to go on to put a

0:51.4

number on that stock's risk a number to give you a much more specific

0:56.1

Understanding and that number is itself based on 25 questions asked of each stock You know know what? We're going to cover the whole

1:04.9

thing this week. Joined by my two friends Andy Cross and Emily Flippin, we three

1:09.8

are going to teach you the entire system, help you rate stocks yourself, along this very important

1:15.5

dynamic of risk.

1:19.8

Only on this week's Rule Breaker Investing. It's the Rule Breaker Investing Podcast with Motley Full Co-founder David Gardner.

1:31.8

Welcome back to Rule Breaker Investing. This week joined by two all-star Motley full

1:36.0

advisors were diving into assessing investment risk using my 25-point risk

1:41.9

rating system.

1:43.0

Now for those keen on exploring further, I've covered this in March 2016's Risk Month series,

1:51.0

which I did for this podcast nearly eight years ago, now available through a

1:54.9

quick Google search if you just Google Rule Breaker Investing Risk Ratings.

1:59.8

These podcasts, although featuring companies that may no longer be public provide a deep dive into this same material

...

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