Financial Risk, What Is It

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*least risky investment* 10 year, U.

S Federal Note

What causes financial risks in an investment:


1. Excessive Debt;
a. Why do companies incur a lot of debt: Because
they want to speed up time. They can own assets
now instead of waiting for them later.
b. If company has debt that’s fine, if a company has
a lot of debt, stay away
2. Overpaying for an investment;
3. Not knowing what are you’re doing

“Price is what you pay. Value is what you get.” - Warren


Buffet

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