Podcast Notes Playlist: Signal From The Noise: By Podcast Notes PN Deep Dive: Howard Marks on Risk, Money + Happiness, Life Saving Lab Tests, Lex/Peterson, Sam Zell, Huberman - Future, Bruno Leoni, Glyphosate and Corruption
Dec 11, 2024
Delve into the intricate dance between financial risk and true happiness, as common misconceptions about volatility are unpacked. Learn about disciplined investment strategies that protect against 'perverse risks.' Discover how financial stability fosters personal fulfillment and the vital role of relationships and health. Explore proactive health management and the pressing need for safer food choices. Finally, redefine success through ethical principles and interconnectedness, inspiring a meaningful life and positive impact for future generations.
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Risk vs. Volatility
- Howard Marks defines risk as the potential for permanent capital loss, not volatility.
- Volatility is a symptom or indicator of potential risk, not the risk itself.
Proactive Investing
- Don't just react to market fluctuations; have a proactive investment strategy.
- Focus on protecting your downside and avoiding big risks, even when others are making profits.
Perverse Risk
- Perverse risk describes how seemingly safe assets become riskier as their price increases.
- The housing bubble of 2008 exemplifies this, where perceived safety led to increased vulnerability.