Heuristic #1
Comes from Warren Buffett:
'Never risk something important, to gain something unimportant.'
He then proceeded to explain that if somebody offered you a revolver with 6 chambers but only one loaded, and offered you a million dollars to put it to your head and pull the trigger, most people wouldn't do it. But few people recognise situations where they are offered $1 to pull the trigger on a gun with 1 million chambers. The risk of losing your life may be much much smaller, but the gain is so trivial, you just shouldn't take that risk.
I think this is a good rule of thumb to live your life by.
'Never risk something important, to gain something unimportant.'
He then proceeded to explain that if somebody offered you a revolver with 6 chambers but only one loaded, and offered you a million dollars to put it to your head and pull the trigger, most people wouldn't do it. But few people recognise situations where they are offered $1 to pull the trigger on a gun with 1 million chambers. The risk of losing your life may be much much smaller, but the gain is so trivial, you just shouldn't take that risk.
I think this is a good rule of thumb to live your life by.
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