While riding a cab, which problem deserves more attention — the AC not working or poor driving? Both are problems, but you'd prioritize safety. With poor driving, you might not arrive at all. This illustrates risk management: address the greatest risk first.
Many investors wonder why they should trust advisers who say "the future cannot be predicted." We cannot predict what's coming, but we can prepare strategically.
The Universa Example
When the WHO declared a pandemic in March 2020 and markets plummeted 30-40%, Universa Investments delivered over 3600% returns. Not through prediction, but through risk management.
The Spare Tire Analogy
Most people carry spare tires despite extra weight and fuel consumption. Avoiding catastrophic costs justifies the ongoing burden. Similarly, prudent investors accept modest drag on returns to protect against major losses.