Part 7 of 10 in a series of personal avalanche avoidance theories.
After going on a financial disaster reading bender for the last three years, I started noticing a lot of similarities between investors and skiers:
- Risk versus Reward
- Smart people getting whacked
- Dumb people getting lucky
- Greed
- Herd instinct
- Competition
- Tons of underlying information available.
Perhaps the biggest similarity is that both financial markets and snowpacks are too complex and too connected to ever be able to forecast them with 100% accuracy. There will always be “one-in-a-million” events in both. Where they do differ is in the end result of getting it wrong – instead of getting bailed out and emerging richer than ever, with avalanches you die. It’s quite unfair. Continue reading ’7 – Hedge Fund Skiing’


