Amazon.com and Market Risk Vs. Investment Risk

It is important to distinguish investment risk from market risk.  Market risk refers to volatility, while investment risk refers to permanent loss of capital.  This is a key weakness of the Capital Asset Pricing Model (CAPM).  It treats market risk and investment risk as synonymous. In Insight's view Amazon.com (Amazon) is a rare technology company in that its powerful business model, while not shielding it from market risk, does greatly lessen its investment risk, in Insight's view.