Fifth, as informed realists, we should be keenly aware of our exposure to risk and should always require a margin of safety. But there’s an important caveat. We cannot allow our awareness of risk to make us fearful, pessimistic, or paranoid. Nietzsche warned, “Stare too long into the abyss and you become the abyss.” As McLennan demonstrated during the pandemic, the resilient investor has the strength, confidence, and faith in the future to seize opportunities when unresilient investors are reeling. Defense suddenly turns into offense. Disruption brings profit.
