Risk against uncertainty

Low risk and high uncertainty are different things, and the gap between them is where returns come from.

• Investing
• Risk

1 idea that carry it

• FrameworkInvestingBook

  Low risk and high uncertainty are not the same thing

  Look for situations where the range of outcomes is wide but the chance of permanent loss is small, because the market prices both as risk.

  Idea generation, special situations, and any pitch where the obvious objection is that the outcome is unknowable.

  From The Dhandho Investor · Mohnish Pabrai