Rules, Truths, Beliefs
The luckier you are the nicer you should be.
Past performance increases confidence more than ability.
There’s a sweet spot where you grasp the important stuff but you’re not smart enough to be bored with it.
The line between bold and reckless is thin and often only visible with hindsight, so be careful who you admire and what you admire them for.
“Everyone has a story but few have an audience,” so there’s so much going on in the world that almost everyone is blind to.
Few things are more persuasive than the opinion you desperately want or need to be true.
Average returns sustained for an above-average period of time leads to extraordinary returns.
Every investor is making a bet on the future. It’s only called speculation when you disagree with someone else’s bet or time horizon.
Statistics and probability are the most relevant but perhaps least-taught maths in schools. They have so many real-world consequences about how people think about everyday risk. And yet.
Price drives narrative and narrative drives price, so crazy things can last a long time.
People who are exceptionally good at one thing tend to be exceptionally bad at other things, but if you’re good at one thing people will try to emulate everything you do.
The market is rational but investors play different games and those games look irrational to people playing a different game.
It’s easy to ignore the power tail events because it’s painful to accept that most of (Read more...)