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When companies often last less than 50 years, they have no interest in preparing for events that happen every 50 years. If they did, it only makes it more likel
by dehrmann 5y ago
When companies often last less than 50 years, they have no interest in preparing for events that happen every 50 years. If they did, it only makes it more likely that a competitor would out-compete them.
- eru 5y agoYou might remember Warren Buffett offering a billion USD to people who could perfectly predict something called 'March Madness'. I don't know the details, but it seems to be some kind of American sporting event, and getting everything right was exceedingly unlikely. You can buy bespoke insurance for this kind of thing. See https://en.wikipedia.org/wiki/Prize_indemnity_insurance https://en.wikipedia.org/wiki/Prize_indemnity_insurance By your logic, Warren Buffett should have been able to buy spend just a dollar or so to buy insurance against someone getting everything right, shouldn't he? After all, the chances were exceedingly small and competition would have driven down the insurance premium?