Machiavelli on Wise Men and Fools

Machiavelli wasn’t an investor. But he understood something many investors still struggle with: hesitation is expensive.

The great political philosopher lived during a brutal era. Florence, his city, was torn between rival powers, betrayals, and coups. In his time, waiting too long to act cost both fortunes and lives.

The wise man does at once what the fool does finally.
— Niccolò Machiavelli

How often do you delay a smart decision, or wait for the perfect entry price or to sell at the absolute top of the market? Doing so is self-defeating because we are rarely aware when that perfect moment arrives. And by the time we accept that it may have passed, our opportunity may no longer offer as large a payoff.

All courses of action are risky, so prudence is not in avoiding danger (it's impossible), but calculating risk and acting decisively.
— Niccolò Machiavelli

This is the real game: not dodging risk, but sizing it up. Not hiding from volatility, but knowing when the odds justify a move.

As investors, we don’t seek danger, but when the balance of risk and reward is in our favor, we must be willing to make decisions, even though we know they could go against us.

This is our second post about Machiavelli's advice for investors. You can read yesterday's at www.mydailyoracle.com. And tune in tomorrow for some insight on defensive investing from self-made billionaire Howard Marks.

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