The saying “Don’t test the depth of the river with both your feet” advises against fully committing to a risk without understanding its potential consequences. It’s a metaphor for the importance of careful risk assessment and incremental involvement.
Here’s why this approach is crucial:
1. Mitigate Risk: By not diving in completely, you reduce the chance of catastrophic loss. Assessing risks gradually allows you to gauge the situation and make adjustments as needed.
2. Preserve Flexibility: Testing risks in smaller, manageable increments preserves your ability to adapt and respond to unforeseen challenges.
3. Ensure Preparedness: A cautious approach ensures that you have a clear understanding of potential risks and rewards before fully committing resources or making irreversible decisions.
In summary, avoid plunging into risky situations without a thorough evaluation. Start cautiously, gather information, and gradually increase your commitment based on what you learn.
Micheal Golden at National Book Festival
The Risk of Letting Losses Run
