Business Quote by Daniel Pecaut
““Buffett believes that real risk comes from the nature of certain kinds of businesses, by the simple economics of the business and from not knowing what you’re doing. If you understand the economics and you know the people, then you’re not taking much risk. For””
About This Quote
Source Interview: CNBC, 2015
Risk stems from business fundamentals and personal competence; understanding economics and people reduces risk.
In simple terms: Risk is about business nature and knowledge.
Key Takeaway
Know the business and its people.
Themes
risk
business
knowledge
Mood
cautious
analytical
Type
financial
advisory
When to use this quote
- investment decisions
- entrepreneurship
- career planning
Key Concepts
economics
competence
uncertainty
Questions to Reflect On
- Do you truly understand the economics of your ventures?
- How well do you know the people you work with?
A Different Perspective
Even with knowledge, external shocks can create risk.
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![“If the State does not acquire supremacy over [vast private] enterprises, it becomes their puppet, and they become the real State.” quote by Bertrand Russell](https://sms4smile.com/quotes/img-quotes/bad/bertrand-russell-69_acquire_if-the-state-does-not-acquire-supremacy_1379.jpg)