MORE IDEAS FROM THE ARTICLE
The purpose of protecting the downside is to prevent losing everything. You shouldn't put all your life energy into a single thing. This is true for your personal life too.
You can't achieve anything if you lock yourself up in your home. To live life to the fullest, you need to make bold moves. And this doesn't necessarily imply risk-taking.
Try to limit your potential losses. Protect the downside.
If you're in business, consider serving more than one group of customers, or focus on more than one industry.
When sales don't perform well in one area, you always have another option.
“It is only by being bold that you get anywhere. If you are a risk-taker, then the art is to protect the downside.”
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.
We always think about the risks involved in making a big chance in life. We consider the risks and then decide not to do it. But, the risks shouldn't scare us into inaction.
A few examples of how we extrapolate our exceptions all the time:
The root of this problem is our quick judgment.
You don't need to earn a lot of money to become rich if you have healthy financial habits.
If you want to get wealthy, you need to consider three things:
”Investing should be a permanent thing. Save, invest. Save, invest. Guessing at market tops, market bottoms – that is a complete loser’s game. I’ve never seen anyone win at it. The smartest investor in the world, Warren Buffett, would say that is not the way to invest.”