Is fundamental investing one big risk or many small risks?

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#1
I think the question misses the nature of risk.
 
When you invest in a stock as a fundament investor, you actually invest in the business of a company. And the business actually faces many risks.
 
At the same time, you also “create” risks due to your behaviour and analytical process.
 
So it is not about mitigating one risk unless you think that investing is one risk by itself. In reality it is about trying to mitigate the multiple risks.
 
I think this goes down to whether you see risk as volatility or permanent loss of capital. If you follow the latter, then you would not think in terms of one big risk.

For more risk insights go to How To Mitigate Risks When Value Investing
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