Part 5/12:
The approach reveals its most compelling utility in investing. Amateur investors often aim to identify stocks that will rise but frequently stumble. Top investors like Warren Buffett and Charlie Munger excel not by picking winners but by avoiding catastrophic losses. They build portfolios that sideline companies most likely to fail, effectively sculpting success through elimination. This minimalist, risk-averse strategy demonstrates that constraints—what to avoid—are more critical than endless possibilities of gain.