Course 210: Operating Risk versus Price Risk
Low Operating Risk and Low Price Risk
In this course
1 Introduction
2 Low Operating Risk and High Price Risk
3 High Operating Risk and Low Price Risk
4 Low Operating Risk and Low Price Risk
5 High Operating Risk and High Price Risk

These stocks are the Holy Grail. Warren Buffett's stocks fit into this category when he bought them, before their valuations increased, pushing them into the low-operating-risk-and-high-price-risk box. The big problem with this box is finding stocks that fit into it. As you've probably realized by now, most stocks tend to congregate in the low-operating-risk-and-high-price-risk box or the high-operating-risk-and-low-price-risk box. The market is more or less efficient, and it tends to exact a higher price for higher quality and a lower price for lower quality.

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