Investors must recognize country risk because political systems like that of China can seize foreign-owned assets at any time.

“So again, as my economics teacher said to me in 1965 at military school, read this book. You must know your enemy. and the Chinese are enemies, you know, and I grew up in Hawaii where we had we dealt with, you know, my my classmates were Chinese or Japanese or Filipino or Portuguese.”

The current stock market is extremely dangerous due to unprecedented levels of leverage and the prevalence of speculative financial instruments.

“This is the highest leverage that we've ever seen in the history of the stock market. Much higher than 1929.”

Investing in China is highly risky because the Chinese Communist Party maintains total control and can seize assets, rendering foreign investments essentially worthless.

“this is the thing like all these there's all these American companies that have invested all this money and notably Apple right in communist China but that money actually isn't theirs.”

If an individual takes significant risk in one dimension of their life, they should counterbalance this by reducing risk in other dimensions to maintain a stable overall risk profile.

“if you are going to have risk concentrated in one dimension, then you counterbalance that by reducing risk in other dimensions.”