The concept of risk. Risk = Loss of VALUE

We should apply the concept of risk solely to a loss of value which either

(a) is realized through actual sale or

(b) is ascertained to be caused by a significant deterioration in the company's position or fundamentals.  (Many common stocks do involve risks of such deterioration.)

YOUR PORTFOLIO OF STOCKS AND MARKET PRICE FLUCTUATIONS

A carefully selected and constructed portfolio in common stocks does not carry any substantial risk of this sort, that is, the risk of loss of value.

Therefore, it should not be termed "risky":

• merely because of the element of price fluctuation, which maybe of a cyclical and temporary nature, and,
• moreover, the holder is unlikely to be forced to sell at such times.

Market price fluctuation is not risk; it is the friend of the value investors.