Chapter
The Role of Luck and Risk in Success
19:05 - 27:11 (08:05)
The speaker highlights how the people we typically admire for their extreme success or failure can lead us to derive overly specific lessons from their experience. He shares the view that managing risk is paramount for investors.
Clips
The tendency to idolize those who have achieved extreme success or failure has led to a blind spot in our understanding of luck and risk in investment.
19:05 - 24:11 (05:06)
Summary
The tendency to idolize those who have achieved extreme success or failure has led to a blind spot in our understanding of luck and risk in investment. Despite the constant management of risk, the observation selection effect in finance prevents a full understanding of how luck and risk play a role in success and failure.
ChapterThe Role of Luck and Risk in Success
Episode#222 - Morgan Housel - How To Become Wealthy, Stay Wealthy & Be Happy
PodcastModern Wisdom
Rory Sutherland from Ogilvy Advertising discusses how following the formula doesn't always guarantee success in advertising.
24:12 - 24:56 (00:44)
Summary
Rory Sutherland from Ogilvy Advertising discusses how following the formula doesn't always guarantee success in advertising. Trying something innovative can either make you a genius or cost you your job.
ChapterThe Role of Luck and Risk in Success
Episode#222 - Morgan Housel - How To Become Wealthy, Stay Wealthy & Be Happy
PodcastModern Wisdom
We need to be cautious about idolizing successful people like Warren Buffett and instead focus on broad lessons rather than hyper-specific ones, as it's difficult to determine how much of their success was due to luck or skill.
24:56 - 27:11 (02:14)
Summary
We need to be cautious about idolizing successful people like Warren Buffett and instead focus on broad lessons rather than hyper-specific ones, as it's difficult to determine how much of their success was due to luck or skill.