1. Don't invest.
2. Reduce risk (the key to Warren Buffett's approach).
3. Actively manage risk (the strategy George Soros uses so astonishingly well).
4. Manage risk actuarially.
There is a fifth risk-avoidance that is highly recommended by the majority of investment advisors: diversification. But to Master Investors, diversification is for the birds.
No successful investor restricts himself to just one of these four risk-avoidance strategies. Some - like Soros - use them all.