Redundancy and Margin
Spare capacity looks like waste in every quarter it is not needed and is the only thing that works in the quarter it is. Systems tuned to full utilisation have no room to absorb a shock, and efficiency drives out exactly the slack that survival requires. Balance-sheet cash, unused credit lines and unbooked hours are the same idea in different clothes.
6 books · 1 people behind it · 4 resources
Start here
- The Checklist ManifestoAtul Gawande, 2009
- Normal AccidentsCharles Perrow, 1984
- AntifragileNassim Nicholas Taleb, 2012
The people behind it 1
Each person holds a book in this entry or names it in their own tags.
Academics 1
Resources 4
- Slack: The Case for Unused CapacityShane Parrish · essay · Systems run at full utilisation have no room to absorb shocks.
- Margin of Safety: Living With FailureShane Parrish · essay · Engineering and investing uses of the same buffer.
- How I Think About DebtMorgan Housel · essay · Debt removes the range of outcomes you can survive.
- The Impact of DebtHoward Marks · memo · Leverage magnifies outcomes and shortens survival.
