Tuesday, March 15, 2011

Things go up and things go down

Investing is allocating risk. Investors look for a situation in which the risk outweighs the reward. That is the only sensible basis for making decisions.

No one can predict things like this or things like this and there's no point trying. Investor simply need to allocate their capital in a way that minimises the potential exposure to those types of events.

Apologies for the long break. I'll be back, I promise.

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