Avoid unnecessary risks and focus on protecting your downside from "summary" of Poor Charlie's Almanack by Charles T. Munger
When you start thinking about risk, make sure you think about it in terms of probability and consequences. Always consider the worst-case scenario and think about how you can protect yourself from it. If you focus on protecting your downside, you can increase your chances of success and avoid unnecessary losses. It's important to be rational and objective when assessing risks, rather than letting emotions cloud your judgment. Avoid taking on unnecessary risks that offer little potential reward. It's not about trying to avoid all risks, but rather about being selective and strategic in the risks you choose to take. By being cautious and mindful of potential downsides, you can mitigate the impact of adverse events and protect yourself from significant losses. Protecting your downside doesn't mean being over...
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