If there's better vocabulary, forgive me.
If you were required to ignore variance as risk, how would you quantify non-fundamental risk?
Many thanks in advance!
Here couple points that at least helped to formulate a daily guide for myself:
I finally do not agree with your statement that value investors ignore risk. They do not and should not ignore risk (whether you call it variance risk or anything else does not matter). I simply have not come across a single successful trader or portfolio manager or investor who took the luxury to ignore risk (draw downs, return variations, ...). The smartest and at the same time most successful traders are not the ones who spot the best opportunities but the ones who exhibit the balance between being fearful and vigilant about exposing themselves beyond stringent risk limits and being aggressive and forceful when opportunities of high risk-return value present themselves.