Risk

"Risk comes from not knowing what you're doing" a famous quote by Warren Buffett. I never quite could put my finger on what this meant. I was just sitting here role playing by asking someone what stocks they own in their portfolio. I'm assuming that this is someone who doesn't invest directly. So i ask them "What can you tell me about company A's capital structure, is it net cash positive etcc..." and the reply is "I don't know" I think this is what Buffett means by risk coming from not knowing what you're doing and not how much volatility its stock price has.