The Zurich Axioms by Max Gunther 1985

The First Major Axiom: ON RISK

• Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough.
• Minor Axiom I: Always play for meaningful stakes.
• Minor Axiom II: Resist the allure of diversification.

The Second Major Axiom ON GREED

• Always take your profit too soon.
• Minor Axiom III: Decide in advance what gain you want from a venture, and when you get it, get out.

The Third Major Axiom ON HOPE

• When the ship starts to sink, don’t pray. Jump.
• Minor Axiom IV: Accept small losses cheerfully as a fact of life. Expect to experience several while awaiting a large gain.

The Fourth Major Axiom ON FORECAST

• Human behavior cannot be predicted. Distrust anyone who claims to know the future, however dimly.

The Fifth Major Axiom ON PATTERNS

• Chaos is not dangerous until it begins to look orderly.
• Minor Axiom V: Beware the Historian’s Trap.
• Minor Axiom VI: Beware the Chartist’s Illusion.
• Minor Axiom VII: Beware the Correlation and Causality Delusions.
• Minor Axiom VIII: Beware the Gambler’s Fallacy.

The Sixth Major Axiom ON MOBILITY

• Avoid putting down roots. They impede motion.
• Minor Axiom IX: Do not become trapped in a souring venture because of sentiments like loyalty and nostalgia.
• Minor Axiom X: Never hesitate to abandon a venture if something more attractive comes into view.

The Seventh Major Axiom ON INTUITION

• A hunch can be trusted if it can be explained.
• Minor Axiom XI: Never confuse a hunch with a hope.

The Eighth Major Axiom ON RELIGION AND THE OCCULT

• It is unlikely that God’s plan for the universe includes making you rich.
• Minor Axiom XII: If astrology worked, all astrologers would be rich.
• Minor Axiom XIII: A superstition need not be exorcised. It can be enjoyed, provided it is kept in its place.

The Ninth Major Axiom ON OPTIMISM AND PESSIMISM

• Optimism means expecting the best, but confidence means knowing how to handle the worst. Never make a move if you are merely optimistic.

The Tenth Major Axiom ON CONSENSUS

• Disregard the majority opinion as it is probably wrong.
• Minor Axiom XIV: Never follow speculative fads. Often, the best time to buy something is when nobody else wants it.

The Eleventh Major Axiom ON STUBBORNNESS

• If it doesn’t pay off the first time, forget it.
• Minor Axiom XV: Never try to save a bad investment by “averaging down.”

The Twelfth Major Axiom ON PLANNING

• Long-range plans engender the dangerous belief that the future is under control. It is important never to take your own or other people’s long-range plans seriously
• Minor Axiom XVI: Shun long-term investments.