With governments continuing to spend and run deficits, risk should be better managed at the individual and company level. Private market participants being overlevered is a concerning issue while governments remain sympathetic for being overlevered.
The speaker tells a story about a risky situation they were in when someone they were working with wanted to sell them cars without proper paperwork. They eventually hired a taxi driver to get away from the situation safely.
The Cautionary Tales Podcast shares stories of risks taken and failures experienced, offering valuable lessons for listeners to learn from. Having skin in the game is a good heuristic for everyone to assess their own experiences and outcomes.
The key to separating good risk from bad risk is to look at the potential relationships that can transcend a project even if the project fails. Good risk can be reduced by investing in high-quality equipment and minimizing unknowns.
