Buffett's Money Rule 4: Risk comes from not knowing what you're doing.
Friday, March 24, 2017, 2:42 PM
Warren Buffett believes that risk in investment is when one has no knowledge about it. When you don’t understand an investment then you should not invest because the risk factor is too high. Conversely, if you are financially literate and have a clear idea of what you are doing, you will be able to evaluate whether an investment has potential.