Risk management is a key component of a successful investment strategy from "summary" of What I Learned About Investing from Darwin by Pulak Prasad
Successful investing is not just about making money; it's also about protecting what you have earned. In the world of finance, risk management plays a crucial role in determining the success or failure of an investment strategy. Just like in nature, where organisms adapt to survive in changing environments, investors must adapt to the ever-evolving market conditions to thrive. One of the key principles of risk management is diversification. By spreading your investments across different asset classes, sectors, and geographies, you can reduce the impact of a single event on your portfolio. This not only helps to mitigate the risk of losses but also provides opportunities for grow...
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