What is worse than a stock market crash? Perhaps this: knowing you could have foreseen it and not having done so. Last week, the announcement of global tariffs by the US president massively clouded the economic outlook for many companies. The result: share prices collapsed, and entire portfolios along with them. Some market participants had recognized the risk and prepared for it. Warren Buffett, for example, liquidated large parts of his portfolio in good time. Not out of panic, but because his risk analyses gave him a well-founded basis for decisions, one that he acted on consistently. Many others, by contrast, lost twice over: ● First through falling prices ● Then through the missed chance to buy back in cheaply later Risk management is not just damage control, it is also the basis for smart decisions. Whoever ignores risks pays with money and opportunity. Whoever understands them secures the ability to act. 👇 The chart makes the point with a wink:
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