From dating to switching jobs and managing retirement. We all manage risk. Want to get better at it?
The best way to learn is to ask some of the real experts: Magicians, gamblers, big-wave surfers, horse breeders, and prostitutes. That's what economist, journalist and risk advisor Allison Schrager did. She's our guest in this episode.
For people faced with risky decisions every day, making the right choices can be the difference between success or failure, and in some cases, life and death.
Allison is the author of the new book "An Economist Walks Into a Brothel: And Other Unexpected Places to Learn About Risk." She visited Nevada's Moonlight Bunny Ranch brothel, hung out with paparazzi who stalked celebrities, spoke with movie makers in Hollywood, and went to a risk conference for surfers in Hawaii as part of her extensive research for the book.
We learn basic lessons about human psychology as well as hedging, diversification, leverage and insurance. "You take risks to get what you want in life, and you're never going to get what you want without taking risks," says Allison.
An Oscar Award-winning documentary is mentioned: "Free Solo," about Alex Honnold's attempt to become the first person to climb the face of America's most famous rock, the 3,000ft El Capitan in Yosemite National Park, without a rope.
Also, learn more about Allison's firm, LifeCycle Finance Partners.
Author Photo Credit: David Noles