The quote from Warren Buffett below, from the 2000 Berkshire annual meeting, goes well with THIS Seth Klarman quote and, especially, the 'What can go wrong?' section in THIS post.
"When we look at businesses, we try to think of what can go wrong with them. We try to look [for] businesses that are good businesses now, and we think about what can go wrong with them. If we can think of very much that can go wrong with them, we just forget it. We are not in the business of assuming a lot of risk in businesses. That doesn’t mean we don’t do it inadvertently and make mistakes, because we do. But we don’t intentionally, or willingly, voluntarily, go into situations where we perceive really significant risk that the business is going to change in a major way." --Warren Buffett