This is how I assess investment risks of the companies that I wish to invest in. I have shortened this to B-FLExCo.
This abbreviation stands for:
B = Business risk
F = Financial risk
L = Liquidity risk
Ex = Exchange risk
Co = Country risk (Also, known as political risk)
At the moment, there is significant political risk for those investing in the KLSE. Accordingly, many KLSE counters are trading at a discount reflecting this risk and other prevailing risks.
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