Have you ever stopped to consider all of the potential risks you could run into during your day? I don’t recommend it; it’s not a pretty picture. Every day, we face an almost infinite number of risks — yet we rarely think about them. It makes sense — if we constantly ran through a list of all the risks we face during our day-to-day activities, many of us would never do anything. For instance, think about letting your kids sign up for a soccer league. There are potential risks associated with driving to and from the field, unknown risks from… Read More
Have you ever stopped to consider all of the potential risks you could run into during your day? I don’t recommend it; it’s not a pretty picture. Every day, we face an almost infinite number of risks — yet we rarely think about them. It makes sense — if we constantly ran through a list of all the risks we face during our day-to-day activities, many of us would never do anything. For instance, think about letting your kids sign up for a soccer league. There are potential risks associated with driving to and from the field, unknown risks from other parents whom you know nothing about, general risks associated with being in public, risks of being exposed to someone who is sick… and we haven’t even gotten to the risks associated with actually playing soccer! Instead of being crippled by fear of risk, we buy auto, home, health and life insurance to protect ourselves from significant risks that are difficult to quantify. But when it comes to investing, few take a similar approach. Rather than thinking about specific risks and setting up safeguards accordingly, many investors are content to just sit on their hands and tell themselves, “I’m focused… Read More