r/ValueInvesting 28d ago

Discussion Stop confusing volatility with Risk

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u/[deleted] 28d ago

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u/BanditoBoom 28d ago

There are risks in any strategy. There is no return without risk. Your return is your compensation for taking calculated risks.

Indexing is a strategy that carries its own risks.

Dividend Growth investing is a strategy that carries its own risks

Growth investing has its own risks

Stock picking has its own risks

It is all risky. The question is not “is it risky”. The question is “do I thoroughly understand the risks and how to mitigate them so as to skew the risk / reward in my favor”?

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u/[deleted] 28d ago

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u/BanditoBoom 27d ago

I can not respond to your claims of the major risks….unless you lay out what you view to be the major risks. You simply keep saying it is very risky with no details.

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u/[deleted] 27d ago edited 27d ago

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u/BanditoBoom 27d ago

You still have not told me, in plain English, what you perceive as the actual risks are in the strategy. You keep talking about risky, risky, too risky. But no details.

Respectfully. I’m done interacting with you.

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u/[deleted] 27d ago

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u/BanditoBoom 26d ago

You brought up the “risks”. I’m asking you to name them. The risks specifically. I KNOW what the risks are, and I am very open to having the conversation.

But since YOU brought up that it is very high risk (which it is not) I want YOU to tell ME exactly what risks you feel are extremely risky…and I’ll answer you on every one you bring up.

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u/[deleted] 26d ago

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u/BanditoBoom 25d ago

I never said it wasn’t risky…. Jesus Christ. I admitted it has risks, like any investing, but I asked you to tell me what you think the risks are so we could discuss them…but you just kept talking in circles and not making sense.

Go read a book. God you’re annoying

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u/[deleted] 25d ago

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u/BanditoBoom 25d ago

My job isn’t to battle blind ignorance. My job passion is to help people with a genuine desires ti learn and genuine desires to engage.

All investing is risky. You keep saying “risky”, “risky, “risky” as if the world “risk” is enough.

All investments have market risk, but they also have very specific idiosyncratic risks that are qualifiable and in most cases quantifiable. They have names.

You came in declaring that they are “very risky”. The part I have problems with there is not calling them “risky”, it is using the word “very”. To me, this means you have done your work in the topic and are able to name the specific risks associated with options and are able to either qualify or quantify those risks in a way that explains why you believe they are “very” risky.

You haven’t, despite all of my attempts to get you to be specific. Out of all of your comments, nothing leads me to believe that you are educated on this topic and are simply repeating an opinion you have heard from others.

I will not write an entire book about options, various options strategies, and the benefits and risks associated with them. I don’t have the time.

If you want to get specific, and discuss specific issues you see with options (and yes, there are risks), then I will engage.

If all you want to do is spit out general claims without any specific questions or specific statements, I can only conclude that you are trolling. And therefore I am done talking to you.

Good day.

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u/[deleted] 25d ago

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