Skip to content
Learning that drives better investment decisions

What Is Risk in the Stock Market?

| |

In this video, I try to help you to understand risk in the stock market and if the stock market is too high. We use four main measures:

  • Enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV-to-EBITDA)
  • Price-to-earnings (PE)
  • Price-to-book value (PB)
  • Price-to-sales (PS)

Then you decide!

We start with quotes from the greats!

“Risk comes from not knowing what you’re doing.” – Warren Buffett

“Rule No. 1: never lose money; rule No. 2: don’t forget rule No. 1” – Warren Buffett

“Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return.” – Charlie Munger

 

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

Posted in Global Markets, Research, Strategy