{"id":13342,"date":"2026-05-22T01:01:28","date_gmt":"2026-05-22T01:01:28","guid":{"rendered":"https:\/\/charliemungersays.com\/?p=13342"},"modified":"2026-05-22T01:01:28","modified_gmt":"2026-05-22T01:01:28","slug":"508-how-warren-buffett-calculate-risks-for-investments-its-not-six-6-sigma-and-not-what-you-think","status":"publish","type":"post","link":"https:\/\/charliemungersays.com\/index.php\/2026\/05\/22\/508-how-warren-buffett-calculate-risks-for-investments-its-not-six-6-sigma-and-not-what-you-think\/","title":{"rendered":"508. How Warren Buffett Calculate Risks for Investments? It&#8217;s not Six (6) Sigma and not what you think!"},"content":{"rendered":"\n<figure class=\"wp-block-embed is-type-video is-provider-tiktok wp-block-embed-tiktok\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"tiktok-embed\" cite=\"https:\/\/www.tiktok.com\/@billionairephilosophy\/video\/7642512366562741525\" data-video-id=\"7642512366562741525\" data-embed-from=\"oembed\" style=\"max-width:605px; min-width:325px;\"> <section> <a target=\"_blank\" title=\"@billionairephilosophy\" href=\"https:\/\/www.tiktok.com\/@billionairephilosophy?refer=embed\">@billionairephilosophy<\/a> <p>How Warren Buffett Calculate Risks for Investments It&#8217;s not Six (6) Sigma and not what you think! Both Warren Buffett and Charlie Munger do not believe in a magic formula for calculating risks in stocks. But calculate they will! They want to ensure your money is safe with Berkshire Hathaway. Warren Buffett and Charlie Munger invest with a mathematical advantage based on their assessment of the moat and economic strengths over the next 5-10 years. Neither Warren nor Charlie approves of using sigma for investing. @billionairephilosophy <a title=\"risks\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/risks?refer=embed\">#risks<\/a> <a title=\"magicformula\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/magicformula?refer=embed\">#magicformula<\/a> <a title=\"sigma\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/sigma?refer=embed\">#sigma<\/a> <a title=\"moat\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/moat?refer=embed\">#moat<\/a> <a title=\"economicstrengths\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/economicstrengths?refer=embed\">#economicstrengths<\/a> <a title=\"5to6years\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/5to6years?refer=embed\">#5to6years<\/a> <a title=\"valueinvestment\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/valueinvestment?refer=embed\">#valueinvestment<\/a> <a title=\"warrenbufffett\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/warrenbufffett?refer=embed\">#warrenbufffett<\/a> <a title=\"berkshirehathawayannualshareholdersmeeting\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/berkshirehathawayannualshareholdersmeeting?refer=embed\">#berkshirehathawayannualshareholdersmeeting<\/a> <a title=\"charliemunger\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/charliemunger?refer=embed\">#charliemunger<\/a> <a title=\"berkshirehathaway\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/berkshirehathaway?refer=embed\">#berkshirehathaway<\/a><a title=\"6sigma\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/6sigma?refer=embed\">#6sigma<\/a> <a title=\"sixsigma\" target=\"_blank\" href=\"https:\/\/www.tiktok.com\/tag\/sixsigma?refer=embed\">#sixsigma<\/a> For business inquiries or other matters, please contact us via email: billionairephilosophy88@gmail.com. To further deepen your knowledge on investing and wisdom acquisition, please visit: Book Lists Recommended by Warren Buffett, Charlie Munger and others https:\/\/www.amazon.com\/shop\/billionairephilosophy Edited on prolonged pauses and claps, filler words, \u201cums and ahs\u201d, and ineffective repeat or connecting words. If you like this video, please subscribe. https:\/\/www.youtube.com\/c\/BillionairePhilosophy?sub_confirmation=1 Warren Edward Buffett is an American business billionaire tycoon, investor, and philanthropist. He is presently the chairman and CEO of Berkshire Hathaway. He is one of the most successful investors of all time with a net worth of over $100 billion, which would be even more counting the billions he already donated to various charities and foundations. Charles Thomas Munger is a wise, perspicacious American billionaire investor, businessman, and lawyer who gets to the core of complex matters in seconds. He cuts to the chase, and often which his unique sense of humor. He is the Vice-Chairman of Berkshire Hathaway and business partner of Warren Buffett. Their friendship is legendary and worthy of emulation. Please visit us: Amazon Link: https:\/\/amzn.to\/3C8lF04 Url Links https:\/\/www.charliemungersays.com https:\/\/www.billionairephilosophy.com https:\/\/www.warrenbuffettsays.com Facebook Groups https:\/\/www.facebook.com\/groups\/charliemungersays https:\/\/www.facebook.com\/groups\/billionairephilosophy https:\/\/www.facebook.com\/groups\/warrenbuffettsays<\/p> <a target=\"_blank\" title=\"\u266c original sound - BillionairePhilosophy - BillionairePhilosophy\" href=\"https:\/\/www.tiktok.com\/music\/original-sound-BillionairePhilosophy-7642512470816344853?refer=embed\">\u266c original sound &#8211; BillionairePhilosophy &#8211; BillionairePhilosophy<\/a> <\/section> <\/blockquote> <script async src=\"https:\/\/www.tiktok.com\/embed.js\"><\/script>\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-13342","post","type-post","status-publish","format-standard","hentry","category-charlie-mungers-3-categories-of-investment-in-out-too-tough"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/posts\/13342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/comments?post=13342"}],"version-history":[{"count":1,"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/posts\/13342\/revisions"}],"predecessor-version":[{"id":13343,"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/posts\/13342\/revisions\/13343"}],"wp:attachment":[{"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/media?parent=13342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/categories?post=13342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/tags?post=13342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}