Part II - Financial Rules of Thumb, or Heuristics for Safe, Smart Investing
Rules of thumb to rule the day
There is asymmetry. Those who die do so very early in the game, while those who live go on living very long. Whenever there is asymmetry in outcomes, the average survival has nothing to do with the median survival. - Nassim Nicholas Taleb
Using this heuristic, having limited downside and unlimited upside, hence an asymmetry in your favour, throughout your investing is guaranteed to keep you out of trouble, safe and sound.
What does limited downside, unlimited upside mean and how can one achieve that with ease?
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