What Is Risk In The Stock Market?

(Video length 00:04:59)

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 ...

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