The Zurich Axioms
- Worry is not a sickness but a sign of health. If you are not
worried, you are not risking enough.
- Always play for meaningful stakes.
- Resist the allure of diversification.
- Always take your profit too soon.
- Decide in advance what gain you want from a venture, and
when you get it, get out.
- When the ship starts to sink, don't pray. Jump.
- Accept small losses cheerfully as a fact of life. Expect to
experience several while awaiting a large gain.
- Human behavior cannot be predicted. Distrust anyony who claims
to know the future, however dimly.
- Chaos is not dangerous until it begins to look orderly.
- Beware the historian's trap.
- Beware the Chartist's illusion
- Beware the correlation and causality delusions.
- Beware the gambler's fallacy
- Avoid putting down roots. They impede motion.
- Do not become trapped in a souring venture because of
sentiments like loyalty and nostalgia.
- Never hesitate tp abandon a venture if something more
attractive comes into view.
- A hunch can be trusted if it can be explained.
- Never confuse a hunch with a hope.
- It is unlikely that God's plan for the universe includes
making you rich.
- If astrology worked, all astrologers would be rich.
- A superstition need not be exorcised. It can be enjoyed,
provided it is kept in its place.
- Optimism means expecting the best, but confidence means
knowing how you will handle the worst. Never make a move if you
are merely optimistic.
- Disregard the majority opinion. It is probably wrong.
- Never follow speculative fads. Often the best time to buy
something is when nobody else wants it.
- If it doesn't pay off the first time, forget it.
- Never try to save a bad investment by "averaging down".
- Long range plans engender the dangerous belief that the future
is under control. It is important never to take your own
long-range plans, or other people's seriously.
- Shun long-term investments.