An investor can account for risk and luck in their decisions by avoiding the idolization of successful people as this can lead to the neglect of the role of luck and risk in their success. They should also understand that success and failure are often determined by factors that are hard to measure such as luck and risk. Therefore, they should not discount these factors in their decision-making process. Additionally, they should be aware that personal experiences and early adulthood experiences can heavily influence investment decisions, which may not always align with the current economic situation.
How should investors manage the inevitabilities of risk? What are the most powerful wealth-building...
View summary