Sublime
An inspiration engine for ideas
Determinant 3: The degree of risk. Risk plays an important role in the stock market and that’s what makes the market so fascinating.
Burton G. Malkiel • A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Twelfth Edition)
If you buy or sell a security and expect an excess return, you should have a good answer to the question “Who is on the other side?” In effect, you are specifying the source of your advantage, or edge.
Michael Mauboussin • Who Is On the Other Side?
The Big Secret for the Small Investor: A New Route to Long-Term Investment Success
amazon.com
Study the distribution of outcomes for the system you are dealing with.
Michael J. Mauboussin • Think Twice: Harnessing the Power of Counterintuition
New is overvalued relative to great.
Ray Dalio • Principles: Life and Work
Day trading and picking individual stocks is not rational for most investors—the odds are heavily against your success.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
I would like to say one important thing about risk and reward. Sometimes risk and reward are correlated in a positive fashion. If someone were to say to me, “I have here a six-shooter andI have slipped one cartridge into it. Why don’t you just spin it and pull it once? If you survive, Iwill give you $1 million.” I would decline — perhaps stating th... See more