When you take high risks, the rewards are higher. So sometimes I'll gamble just to see what happens. If it doesn't work, I know I can't do that.
Checklists turn out...to be among the basic tools of the quality and productivity revolution in aviation, engineering, construction - in virtually every field combining high risk and complexity. Checklists seem lowly and simplistic, but they help fill in for the gaps in our brains and between our brains.
As value investors, our business is to buy bargains that financial market theory says do not exist. We've delivered great returns to our clients for a quarter century-a dollar invested at inception in our largest fund is now worth over 94 dollars, a 20% net compound return. We have achieved this not by incurring high risk as financial theory would suggest, but by deliberately avoiding or hedging the risks that we identified.
Just like a mountain goat climbing very steep and dangerous land to lick salt from the rocks, man also should take high risks to get what he wants!
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