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Tag / Risk

How To Burn The Boats Properly

In 1992, Bruce Springsteen delivered an song called “Local Hero” that has one of the best lines he ever wrote. It goes like this: These days I’m feeling alright, ‘cept I can’t tell my courage from my desperation. This is true for most of us, isn’t it? Our moments of genuine courage are also moments […]

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Fight The Past. Better Yet, Ignore It.

They say the Pacific Ocean has no memory. What about us? What would we be if we deliberately forgot our entire personal history? To some extent, our past is a vital source of knowledge. Without it, we would make some terrible mistakes again. It fits with George Santayana’s famous line: Those who cannot learn from […]

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The Best Book To Understand Uncertainty

The Black Swan Rating: 10/10 Best Line #1: I am going to be blunt. Best Line #2: When we think about tomorrow, we just project it as another yesterday. The very idea of uncertainty is foreign to many people. It isn’t solely about ignorance. There is much that we recognize we do not know. It […]

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The Best Way To Play With Risk: Be Extreme

There are safe, high-probability ventures. There are risky, low-probability ventures. Which should you explore? That’s a silly question. Financial investors scoff at such an idea. They resist the notion that you explore one or the other. They say you explore both. A classic portfolio strategy is to blend high-risk/high-yield and low-risk/low-yield investments to create a […]

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How To Make A Lot Of Money

Jim Barksdale once said that you make money two ways: by bundling or unbundling things. I think this is a very helpful idea. It isn’t the only way to make money but it’s a proven method. A successful bundling approach is Netflix. They take all the entertainment you want in put it in one helpful […]

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Entrepreneurship Is Calculus, Not Statistics

I’ve written about the importance of statistics on several occasions. I even dedicated a full week to the topic when covering the fabulous book Naked Statistics by Charles Wheelan (here’s the book review). And whether it’s the importance of understanding randomness a’la Nassim Taleb’s Fooled By Randomness (here’s the book review) or the desperate need […]

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The Best Book For Understanding Luck

Fooled By Randomness By Nassim Nicholas Taleb Rating: 10/10 Best Line #1: Clearly risk taking is necessary for large success—but it is also necessary for failure. Best Line #2: The only article Lady Fortuna has no control over is your behavior. Good luck. I want to start by thanking Shane Parrish and Josh Wolfe for […]

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Choose Your Risks. Ignore Your Rewards.

The more I read about probability and complexity, the more I respect the fact that risk isn’t something I can avoid. Risk is like oxygen, ever-present and necessary for life. Ever-present because even the safest position can be lost. Might be improbable but it’s still possible. Necessary because risk is the seed for value. Whether […]

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