Warren Buffett: Riskiness

When we look at the future of businesses, we look at riskiness as being sort of a go/no-go valve. In other words, if we think that we simply don’t know what’s going to happen in the future, that doesn’t mean it’s risky for everyone. It means we don’t know – that it’s risky for us. It may not be risky for someone else who understands the business. However, in that case, we just give up. We don’t try to predict those things.”

—Warren Buffett (1998 Berkshire Hathaway Annual Meeting, via Outstanding Investor Digest).