Risk. A lot of people talk about it, but especially in the investment world, I've never found

that talk very satisfying. First of all, how do you, how do I, how do they define risk? What does it

mean even to say that's a risky stock? The definitions are often unclear. Then some professional analysts in the risk section

of their stock research will say stuff like medium. As in this is a medium risk stock. What does

that mean? Well, more than a decade ago, I developed a 25 point risk rating system that I've used as a

rule breaker investor ever since. First off, I developed a 25 point risk rating system that I've used as a rule breaker investor ever since.

First off, I defined risk. Well, at least what that word means to me as an investor.

And then we went on not just to put a word to the riskiness of the stock, not just a word like medium,

but to go on to put a number on that stock's risk, a number to give you a

much more specific understanding, and that number is itself based on 25 questions asked of each

stock. You know what? We're going to cover the whole thing this week, joined by my two motley

fool friends, Alicia Alfieri and Yasser al-Shimi, we three are going to cover the whole thing this week. Join by my two Motley Fool friends, Alicia Alfieri and Yasser al-Shimi,

we three are going to teach you the entire system,

help you raid stocks yourself along this very important dynamic of risk.

Only on this week's Rule Breaker Investing.

It's the Rule Breaker Investing podcast with Motley Fool co-founder, David Gardner.

Welcome back to Rule Breaker Investing. This week, joined by two Motley Fool experts, two friends

for diving into assessing investment risk. my 25 point risk rating system.

Now, risk in equity investing, as I define it, is the potential loss of a substantial portion of capital over a significant period, like, let's say, three years.

Understanding this risk at both an individual stock level and also a portfolio level is crucial.

And my framework, which was created to provide clarity in risk assessment, moves away from

vague terms like medium risk.

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