Business
Risk vs uncertainty: why one is a lot worse
Weighing up risk and uncertainty is everyday business for share investors.
But is there a difference, and what can you do about each?
Fortunately for The Motley Fool readers, SG Hiscock portfolio manager Hamish Tadgell this week settled this question once and for all.
“Risk is something you can price, based upon assumptions that you make,” he said in this week’s Ask A Fund Manager.
“Uncertainty is events that you can’t really price, because by its nature it’s uncertain and it [just] happens.”
For example, one risk is the chance of international and state borders opening up for travel. Investors considering buying Qantas Airways Limited (ASX: QAN) shares will be pricing this in when they decide how much to pay.
If you think border…
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