Zurich axioms - A book on Risk taking, by Max Gunther
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Switzerland, a country with no strategic or geographical advantage, became the world’s banker by learning how to manage risk and facing it head on.
Zurich axioms are simple rules in order to learn about betting to win.
The First Major Axiom:
ON RISK
- Life is an adventure. In order to experience life to its full potential one has to take meaningful risk.. All Investments are speculation. Some people accept it. some don’t.
Always play for meaningful stakes.
- An investment with a small stake would not incur significant loss but will not generate any significant gain too. It should also not be so huge that loss would bankrupt a person.
- Resist the allure of diversification. The more one diversifies, the smaller the speculation gets. Through diversification all the losses and gains are likely to cancel out and no sizable difference is made.
