Connect with:
Monday, August 2, 2021

Why Risk Management Isn’t Like Silly Car Shopping

This article by RiXtrema President appeared on

I like to use car shopping as an analogy to the investing process. Let’s imagine what it would it be like to buy a car with a view only to targeting our tolerance for risk and forgetting why we are tolerating risk.

Car Shopper:  “I am considering these two cars, can you explain to me the difference between them?

Car Salesperson:  “Sure thing. The one on the left will give you a whiplash when hit from behind and the airbag will break your nose. The one on the right will actually break a number of bones, including a collar bone and will possibly give you back pain for a good long while. Now, which risks are you ready to tolerate?

Car Shopper:  “I’ll take the broken nose please…”

Click Here To Read The Full Article On


It’s nice to meet you.

Sign up to receive awesome content in your inbox, every month.

We don’t spam! Read our privacy policy for more info.

%d bloggers like this: