Playing the Long Game: Risk Management Lessons from Costco and Charlie Munger
In both life and business, risk management is a simple concept. It centers around proactive identification, assessment and mitigation of potential losses that could threaten long-term viability of an investment, a relationship, our integrity, or reputation. It’s about knowing what could go wrong, how likely it is to happen, and taking steps to minimize the potential damage. This approach isn't about eliminating risk entirely. Life, business, and investing are inherently uncertain. Instead, it's about making informed choices, always considering the long-term view, and prioritizing lasting value over temporary gains. It's about favoring substance over flash.
Mar 9, 2024
