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"Es más importante garantizar la supervivencia ante resultados negativos que asegurar máximos rendimientos ante los favorables"

Howard S. Marks

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Simplified Meaning:

When things go wrong, staying safe and avoiding big losses is more important than trying to make the most money when everything is going well. Imagine you're playing a game where you can win a lot of points but also risk losing everything. It's smarter to play it safe and not lose all your points rather than risking everything for a big win. For example, in investing, it's better to choose safer investments that don't lose much of your money rather than risky ones that might give you high returns but also have a big chance of losing all your money. This way, if things go badly, you still have something left to build on. In daily life, this could mean making sure you have an emergency savings fund instead of spending all your money on things that might give you temporary joy. Overall, it's about being cautious with important things to make sure you’re protected even if things don’t go as planned. In this way, you can handle tough situations better and won't be left with nothing if things go badly.

Related tags
Decision making Long-term planning Risk management Survival Uncertainty
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