As financial advisor Carl Richards says, "Risk is what’s left over after you think you’ve thought of everything." - P17
That’s the real definition of risk—what’s left over after you’ve prepared for the risks you can imagine. Risk is what you don’t see. - P17
Either everyone in the past was blinded by delusion. Or everyone in the present is fooled by hindsight. - P18
But that’s the point: The biggest news, the biggest risks, the most consequential events are always what you don’t see coming. - P19
The fact that you can’t see it coming is exactly what makes it risky. - P20
History knows three things: 1) what’s been photographed, 2) what someone wrote down or recorded, and 3) the words spoken by people whom historians and journalists wanted to interview and who agreed to be interviewed. - P21
Nassim Taleb says, "Invest in preparedness, not in prediction." That gets to the heart of it. - P22
Expectations and forecasts are two different things, and in a world where risk is what you don’t see, the former is more valuable than the latter. - P23
Two, realize that if you’re only preparing for the risks you can envision, you’ll be unprepared for the risks you can’t see every single time. So, in personal finance, the right amount of savings is when it feels like it’s a little too much. It should feel excessive; it should make you wince a little. - P23
The first rule of happiness is low expectations. - P25
"If you only wished to be happy, this could be easily accomplished; but we wish to be happier than other people, and this is always difficult, for we believe others to be happier than they are." - P25
Investor Charlie Munger once noted that the world isn’t driven by greed; it’s driven by envy. - P25
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