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Analyzing Risk

On a recent podcast I was on, I was asked why I took so many risks. I stuttered for a second before answering the question because I was trying to think of an example of a big risk I took. I couldn't think of any, so I had to answer the question in a different way.

At the same time, I understand why people have the perception that I take a lot of risks. I think the difference is in how we perceive risks, and I'd argue that my method of doing so is more accurate.

When I calculate risk, I look at the statistics and before blindly applying them, I ask how relevant they are to me as an individual.

In some cases, they're fairly universal. My risk of dying in an airplane crash is the same, per mile, as anyone else's. The financial risk I accept by investing in a particular stock is the same as well.

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