How Probability Shapes Investments This idea of probability is literally all over your financial decisions. Investments of any sort are based on the probability of a given occurrence. Every investment decision is a roll of dice around minimising risk and maximising reward. The risk is nothing but the probability of a negative occurrence. It’s different than just giving into a trend. It requires considering the many factors at play and deciding which factor, to your mind, has the largest role to play. And you will roll the dice based on that. Applying Probability in Real Life So how do you really implement knowledge of probability? You learn to prioritise based on how likely something is. You learn to shut down that anxious voice that wants absolutely no risk. You take your chances that the good things will happen, given reasonable circumstances. Pareto gave us the 80:20 rule and showed that 20 percent of your actions create 80 percent of the impact. Probability helps you figure out which 20 percent to focus on – because the likelihood of that portion having an effect is the highest. Beyond that, roll the dice and play your odds. Pria is an experienced business consultant who works as a business coach and advisor helping clients improve their relationship with money. She also helps with strategy, business plans and idea assessments. @guide_my_idea www.priamasson.com bahrainthismonth.com | MAY 2025 COMMERCE 55 HH Shaikh Ebrahim Majlis HH Shaikh Ebrahim Majlis warmly welcomed guests in a joyous Eid celebration that fostered unity and tradition.
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