The kid hated to lose and as he was giving away his life’s earnings his grandfather said, “Only bet on yourself. Don’t bet on events and people you can’t control to influence. Don’t bet on what you don’t know or understand.”
These golden words hold immense wisdom in business. History is galore with examples from sub-prime crisis to Wall Street crash to the dot-com burst. These events had downed hundreds of companies and rendered millions unemployed. They had one common characteristic. The executives of the failed firms had an appetite for risks. More importantly they were betting on risks beyond their control; on things they did not understand and on things that they did not believe in.
Was it then a surprise disaster was in the making.
The golden rule of any successful manager or entrepreneur – he would should bet only and only if he can influence and has control. Risk taking is not a great idea if you do not control the risk factors.