Investing is about making probabilistic decisions with limited information about an unknowable future. The variables are well known, as are the possible outcomes.
Sentiment: POSITIVE
It is important for investors to understand what they do and don't know. Learn to recognize that you cannot possibly know what is going to happen in the future, and any investment plan that is dependent on accurately forecasting where markets will be next year is doomed to failure.
The reality is, risk is variable. Those in the financial world know it.
There's a tendency to look at investments in isolation. Investors focus on the risk of individual securities.
Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.
As much as it's sometimes hard to make choices about where you invest, it's equally hard to make choices about where you don't invest and what you eliminate.
Investing is a business where you can look very silly for a long period of time before you are proven right.
Successful investing is anticipating the anticipations of others.
It's important to understand how people perceive risk, and how that translates into investment behavior.
I have learned that nothing is certain except for the need to have strong risk management, a lot of cash, the willingness to invest even when the future is unclear, and great people.
Investors should invest on what they know. The biggest mistake is to invest on what they don't know.