Asymmetric Investing: Risking Less to Pursue More
Risking a small, defined amount for the chance at a larger outcome, where it appears in a portfolio, and the caveats.
Read the transcript
Here's something I want everybody to remember. You have a choice. Do you want to be the guy or the gal that is risking dollars to make pennies? Or do you want to be investing pennies to make dollars?
Not greed, honoring your capital
The benefit, again, of risking pennies to make dollars is not greed. It has to do with honoring how hard you work for the capital you are investing, and protecting that.
The humility of a margin of safety
And the humility, the humility, not greed, but humility, of accepting that we don't know everything. We don't know what's around the corner. And so it's smart to have that margin of safety, because of the humility of acknowledging: I don't know what tomorrow looks like.
Transcript edited for readability from the video. Machine-transcribed; may contain minor errors.
