Is warren Buffett risk averse ? Well we will get into that problem later, but what is Risk- Aversion ? Its disliking to risk, Daniel kahneman gave the Prospect theory in which he proposed that People are more sensitive to losses and gains, For 1 Rs in loss people expect a 2 Rs in profits. A look at the below chart shows us that the curve is a S curve which means people are more sensitive to losses than gains, When there is an equal likely outcome, Risk-Averse people tend to d