There are few things as risky as the widespread belief that there’s no risk, because it’s only when investors are suitably risk-averse that prospective returns will incorporate appropriate risk premiums.
… a speculator is one who runs risks of which he is aware and an investor is one who runs risks of which he is unaware.
—John Maynard Keynes
Some of the worst business decisions I’ve ever seen are those with future projections and discounts back. It seems like the higher mathematics with more false precision should help you, but it doesn’t. They teach that in business schools because, well, they’ve got to do something.
—Charlie Munger
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