The paradox of risk-taking is inescapable. You have to take it to be successful. But taking it doesn’t mean you’ll be successful; that’s why they call it risk.
“The point of those uncorrelated alternatives is to make money over the long term while being, well, uncorrelated… but we still evaluate these investments by comparing them to stock market returns, feeling extra good about them when the stock market is down, and extra bad when the stock market is up.”
“When a geopolitical risk arises our natural tendency is to immediately become foreign policy experts, and also believe that we can confidently link complex and imponderable political situations to financial market outcomes. It is hard to overstate quite how difficult this is.”
“The single best advice we have in framing is broad framing. See the investment decision as a member of a class of decisions that you’ll probably have to take.”
“The point of those uncorrelated alternatives is to make money over the long term while being, well, uncorrelated… but we still evaluate these investments by comparing them to stock market returns, feeling extra good about them when the stock market is down, and extra bad when the stock market is up.”
“When a geopolitical risk arises our natural tendency is to immediately become foreign policy experts, and also believe that we can confidently link complex and imponderable political situations to financial market outcomes. It is hard to overstate quite how difficult this is.”
“The single best advice we have in framing is broad framing. See the investment decision as a member of a class of decisions that you’ll probably have to take.”