What Is Risk in the Market?

• The business-side risk comes first. According to Benjamin Graham's method, you should view the stock market as separate from the company; if the business does well, that's enough. This is why risk has absolutely nothing to do with price volatility.
• A good example of risk is the business doing poorly because of the many competitors that rushed into the commercial aircraft market in the past.
• When Buffett led Berkshire, amid the race to the lowest price, if you couldn't produce at that low cost, that was the risk (someone buying cheaply is the risk).
• The other risk is paying too high a price.
• The next risk is yourself.
• Volatility is not risk.

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