Few people understand risk in a way that makes it actually rewarding. That’s the message offered in The Zurich Axioms. The book lays out 12 Axioms that play off this idea.
In some cases, the Axiom runs counter to typical investor behavior. In others, it runs counter to popular thinking. And some are obvious. I guarantee you won’t agree with all of them, but it should, at least, give you something to think about.
These are the lessons from a few Axioms that stood out (check out the notes linked below or read the book for the full list).
Axiom #1: Worry is not a sickness but a sign of health. If you’re not worried, you are not risking enough.
In investing, most people want a risk-free reward. Yet, risk and reward are intertwined. No matter how hard you try to remove one, it affects the other. Not many get that. Continue Reading…