When you're an investor, you can look at the quantitative and qualitative elements of an investment, but there's a third aspect: What you feel in your gut.
Sentiment: POSITIVE
It's important to understand how people perceive risk, and how that translates into investment behavior.
Money and investing can be complex, confusing, and often boring subjects.
There's a tendency to look at investments in isolation. Investors focus on the risk of individual securities.
I'm primarily just an investor.
Investing is a business where you can look very silly for a long period of time before you are proven right.
For most people, attaining the intellectual clarity and emotional detachment that investing requires is tough.
I am not criticizing investing in the stock market; I am an investor.
I'm not emotional about investments. Investing is something where you have to be purely rational and not let emotion affect your decision making - just the facts.
I found an approach to investing that made enormous sense to me: rigorously analyzing a company's fundamentals, understanding exactly how it makes money, developing a view on the business's future prospects, and deciding if it's a good business.
When it comes to investments, I have to go to someone else to understand them, but then I have to make a judgment. I can't do that if I don't have a basic understanding myself.