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A Cruise Ship analogy to investing
Quote: “For the many people who have had the pleasure of taking a cruise ship vacation, they know that before they set sail they must participate in a lifeboat drill. Cruise ship lines do this before anything goes wrong for a few reasons. First, they know that it’s important for people to know what to do and what not to do if anything goes wrong. Second, it reminds everyone that there are risks associated with sailing and, while the risks of problems occurring are well managed, it is still important to prepare for a potentially bad situation.

Wise investors use the same kind of logic. The evidence is very clear that the success or failure of an investor in meeting their goals often depends far more on how they behave than how the investment does, so they stay prepared for a turn for the worse.”