Limited downside, unlimited upside

You should do pretty well in life if at every juncture you’re choosing a path which has limited downside and unlimited upside.

Limited downside means that the costs from a particular action are contained. Unlimited upside means the outcome could be so successful you have trouble comprehending it.

This may sound logical, but you’ll be surprised how often we contain our upside and lose sight of the downside.

Another way you can think of this is, What’s the worst-case scenario and the best-case scenario for this decision? Ideally, you want to be comfortable with the risk you’re exposing yourself to, and excited by what it could mean if it pays off.

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