The chapter explores the concept of risk in investing and introduces a 25-point risk rating system to evaluate a stock's risk level. The importance of assessing risk at both the individual stock and portfolio levels is emphasized, with two example companies used to demonstrate the application of the risk rating system.
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