What is Risk

This lesson is about risk in investing and how to avoid permanent loss of capital. The speaker highlights three concepts – revenue, margins, and death – and explains that if all three are in good state, the risk is dramatically limited. The speaker provides the example of Tesla and argues that buying shares in a company that loses money every year is not a good investment. The speaker suggests that a good investment strategy is value investing, where one considers what they are paying for and what they can expect to get back, instead of relying on heavy growth.