The Psychology of Risk: Why Value Investors Don’t Fear Volatility

Why the Smartest Investors Welcome Volatility as Their Secret Weapon Against Risk

Most investors equate risk with volatility. A sudden dip in the market can trigger panic, leading many to sell at the worst possible moment. But as a value investor, you know better. Risk isn’t about price swings; it’s about losing your hard-earned capital permanently.

Even academia likes you to believe that high volatility means high risk. This does a g…