Risk is an often misunderstood and poorly communicated concept. Even professional investors can be afraid of risk. However, risk is going to be a part of every single investment decision that is ever made and there’s no such thing as a risk-free investment. So hopefully, in this episode, we can provide some tools and a framework to help you think about risk and overcome any hesitance you may have. Brad and I discuss risk from the academics’ perspective, real estate, and private equity side; as well as risk deal killers, and general risks that factor into any investment.Key Takeaways:[:10] About our topic of discussion today.[1:51] How the academics think about and talk about risk.[9:43] How we think about risk (in real estate and private equity.)[12:26] How Brad looks at to evaluate real estate risk.[14:42] More factors that go into risk analysis in real estate.[17:28] Are there any risk deal killers? What risks would kill the deal?[20:51] How I think about risk in private equity.Mentioned in this Episode:The University of ChicagoModern Portfolio Theory (by Harry Markowitz)University of California San DiegoStandard Deviation VolatilityDue DiligenceBase CaseDownside RiskMarket RiskFor More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.