Portfolio risk management extends beyond individual components to system-level design.
Correlation Risk in Life Design
Hidden correlations create systematic risk. Identifying and breaking correlations improves resilience.
Common dangerous correlations: - Income = Location = Social network - Identity = Career = Purpose - Skills = Industry = Relevance - Relationships = Profession = Support
Nicole systematically decorrelated these elements, building true independence.
Barbell Strategies for Life
Extreme safety plus extreme speculation beats moderate everything (see Chapter 9).
Frank's life barbell: - Safe end: Stable job, savings, core relationships, proven skills - Speculative end: Startup equity, experimental skills, new relationships, bold projects - Empty middle: No moderate commitments
This structure provided both security and unlimited upside.
Antifragile Life Design
Beyond risk management, antifragile design improves from disorder.
Lisa built antifragile elements: - Stressors that strengthen (challenges building skills) - Randomness that benefits (serendipitous encounters) - Volatility that enriches (market fluctuations) - Time that compounds (relationship depth) - Disorder that clarifies (crisis revealing priorities)
Her life got better from the same forces that weakened others.