The Truth About Risk…
Summary
- When you make an investment decision, you'll often justify saying no to opportunities because they appear risky.
- Others may agree and think it's a good idea to avoid what looks too risky.
- To make better decisions, you need asymmetric knowledge that shifts the odds in your favor in an industry.
- Be an insider by knowing more than the people you're competing with through building your skills.
- What seems like a 10 out of 10 risk for others could be a 2 out of 10 risk for you because of your knowledge.
- If an opportunity has a 10 out of 10 upside for both you and others, your adjusted return is better due to your expertise.
Video
How To Take Action
Implementing Low-Cost, High-Value Strategies for Business and Personal Growth
I would suggest implementing the idea of gaining asymmetric knowledge in your field. Start by dedicating at least 30 minutes a day to learning more about your industry. Read articles, attend webinars, and join relevant online forums. This low-cost and time-efficient practice will help you build an edge over competitors.
A good way of understanding risks differently is to gain inside knowledge. Look for industry reports and case studies that show behind-the-scenes information. This way, what seems like a high risk for others will be a lower risk for you because you know more. For example, if you're in retail, learn about inventory management and customer behavior trends.
Another approach is to network with industry experts. Join local business groups or online communities where experienced entrepreneurs hang out. Ask questions and share your experiences. Gaining insights from those who've already been through the process can save you time and money while providing valuable knowledge.
Focus on building your skills. Take free or low-cost online courses that are directly related to your business or personal growth goals. Websites like Coursera or Udemy offer a range of courses at little to no cost. Improving your skills will make you more confident in taking opportunities that others might find too risky.
Lastly, practice evaluating opportunities from the perspective of someone with more knowledge. When a new opportunity comes up, ask yourself: "If I knew more about this, would it still look too risky?" This mindset shift can help you see the potential upside more clearly and make better decisions.
By gradually implementing these strategies, you'll shift the odds in your favor and make smarter, less risky decisions that can lead to high returns.
Full Transcript
when you make an investment decision you will always be justified in saying no to Opportunities because they will also look like Risk and so other people will nod their heads and say yes that was a good idea that looked too risky but at some point you want to have some sort of asymmetric knowledge about the bed itself which actually shifts the odds in your favor in an industry You Can Be The Insider and know more than the people you're trading with through skill if you see risk which for the Layman would be a 10 out of 10 risk but for you is a 2 out of 10 risk but for the Layman has a 10 out of 10 upside and you has a 10 out of 10 upside your risk adjusted return is different because of who you are and what you bring to the table
