How does randomness make you lose a lot of money?
Editor’s note: This article is from the WeChat public account “Man and God Working Together” (ID: tongyipaocha), author People and gods work together.
What is the biggest difference between investment and work?
I am often asked questions like “what kind of ability is needed for investment”. I think everyone has a different ability circle. If you just say “vision, logic, insight” and so on in general, you can’t get close to the problem. In essence, it’s better to answer another more important question——
What is the biggest difference between investment and work?
The answer is: in investment, you will encounter a lot of random events, and in work, if you are only the executive layer, you will have much less random events in your work.
Investment has risks. “Randomness” is part of the risk, but it is different from other risks. Many risks can be resolved and avoided, but the risks caused by randomness cannot be absolutely avoided.
For example, you have completed a project and submitted it to your boss for review. In this proposal, in addition to the risk-free routine work, the risk comes from the personal preference of the boss and the work information you do not have.
Some of these risks are solvable. You can sum up your boss’s preferences and communicate with colleagues before working to learn more about your work.
But there are still some risks that cannot be avoided. For example, the boss’s dog is ill, causing a bad mood. For example, you accidentally lose the file. For example, someone just made a suggestion that was completely opposite to you.
Generally, the work of the executive level is mostly deterministic events and controllable risks, and there is very little unpredictable randomness. However, the higher the position, the less the execution work, the more decision-making events, and the more and more unpredictable randomness. There are a large number of random factors in organization and personnel, products and markets.
At the level of CEO and boss, it is random events that really determine success-the luck we usually call.
Similarly, in the random world of investment and financial management, fate controls everything, and the only thing you can control is the “expected return.”
If we only want 1.5% of deposit income, then we can directly deposit money or buy currency funds such as Yu’ebao, there is almost no randomness;
If you are asking for a 3% return, that would be low- and medium-risk wealth management products and bond funds. The maturity value is basically determined, but there will still be random fluctuations during the period.The only thing that fate cannot control is your attitude towards life.
