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Always Protect The Downside - Darius Foroux
Your most valuable resource is time. Yet, most spend their time working on other people's goals.
Use your time wisely by daily improving your skills, learning new things and building relationships. Then you will always have something to fall back on.
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SIMILAR ARTICLES & IDEAS:
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Key Ideas
A few examples of how we extrapolate our exceptions all the time:
The root of this problem is our quick judgment.
But that doesn’t mean we should follow through on every single thought that pops into our mind.
Every time you start thinking about future events or start making mental movies, keep count on a post-it note or a small piece of paper. Be aware of your thoughts. But don’t follow through.
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Key Ideas
Most of us have heard stories of hardships and catastrophic events of the past, like the great depression, or the dot-com bust, but haven’t lived through it, and not experienced the real pain of the disaster.
Hearing stories about something that happened in the past isn’t enough to truly realize the lesson from them.
In the world of investing, having gone through a traumatic experience first-hand makes the difference between a cautious investor and a blind one. The scarred investor cannot think in the way the fresher, who hasn’t experienced the turmoil can.
Our unique experiences impact our vision in ways we cannot comprehend on the surface.
Different generations have different investment risk appetites, with the younger generation wanting to take bigger risks and going into uncharted waters without any experience.
The New Generation, who hasn’t experienced turmoil and loss, are good at getting rich. However, the older, scarred generation is good at staying rich due to their general pessimism and conservatism. There is a need to balance the two aspects while taking an investment decision. People with different experiences aren’t necessarily smarter than others but just have a different worldview.
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Key Ideas
“Money isn’t making that much difference in how you and I live. We’re both going down to the cafeteria for lunch and working every day and having a good time. So don’t worry about money, because it won’t make much difference in how you live.”