Volatility vs. Risk – Why They’re Not the Same

06/08/2025 6 min Episodio 17
Volatility vs. Risk – Why They’re Not the Same

Listen "Volatility vs. Risk – Why They’re Not the Same"

Episode Synopsis

In Episode 17, we explore the crucial difference between volatility - the daily ups and downs of an asset - and true risk, which is the permanent loss of capital. Most investors treat both as the same, which leads to fear-driven decisions and missed opportunities. We break down how volatility can be your friend, especially if you're a long-term investor, and why short-term noise often distracts from long-term value. You'll learn how to reframe your thinking, reduce emotional mistakes, and build a more resilient portfolio. The episode also covers how different types of assets carry different forms of risk that go far beyond just price movement.