Skip to main content

Just my thoughts #0680

The most important rule in investing is not to lose your initial capital. Making money comes later. If you lose 50% of your principal, the loss rate is 50%, but to recover that principal, you need a 100% return. This is because the baseline of your return—the principal—has already been halved. Many people tend to think that if they’ve lost 50%, they only need a 50% return to break even. However, this is a misunderstanding of the starting point. In investing, the baseline is always the original principal. The principal after a loss is no longer the same; it’s already in the past. - Joseph’s “just my thoughts”
Post a Comment

Just my thoughts #0351

The scariest people in the world are those who truly know themselves. It may sound easy, but few understand what they excel at and what they prefer. The same goes for occupations. Someone may seem to know their job well, yet they might not fully grasp what they’re doing. What potential exists—whether the job is suitable for the times, if you’ve chosen the wrong market, or who the right partner is for you? The fact that many rarely start by understanding themselves means they often spend time without gaining much insight, even as they struggle hard.


- Joseph’s “just my thoughts”




Labels:

Comments

Post a Comment

Popular posts from this blog

Just my thoughts #0039

The Anchoring Heuristic In 1974, Tversky and Kahneman divided two groups and asked one group to calculate the value of "8x7x6x5x4x3x2x1" and the other group to answer the question "1x2x3x4x5x6x7x8" immediately. The average calculation result of the first group was 2,250, and that of the second group was 512. For both groups, the original answer is 40,320, which is the same. Although they multiplied by the same number, the first group multiplied by the order of the larger number, resulting in a higher baseline adjustment, while the second group did the opposite. When we judge and make decisions, the reference point determines the extent and direction of our illusion. When we live, we have to deal with these fallible human beings. - Joseph's "just my thoughts"
Post a Comment
Read more

Just my thoughts #0006

"Apples are the fruit" is a true proposition. At this time, "apples" are a Sufficient Condition to be fruit, and vice versa, because the "fruit to be an apple is more necessary for other conditions such as "red, round", the fruit is a Necessary Condition to become an apple. If the proposition of "If you respect someone, you'll get married" is "true," it's a "Sufficient Condition" to find someone you admire for marriage, but it's just only a "Necessary Condition" to find someone to marry for respect. Even with respect, you can not get married. You can't get married even if the Reverse Proposition is "true." Because marriage is a matter of "choice" before conditions or needs. If you want a respectable man, you can find a great man. To live comfortably, you can find a rich man. So, is there no Necessary-Sufficient Proposition for a marriage (conditions where both the proposition ...
Post a Comment
Read more

Just my thoughts #0057

Most people substitute the issue of choice with the issue of ability. They recognize they cannot do it because scaring to make the wrong choice or lack the knowledge. Banks pay me 1 to 2 percent interest annually on deposits but charge me 4 to 5 percent on loans. It's a game where I'm losing money in every way. Then, I want to avoid putting my money in the bank. It would be better to use it to purchase that bank's stocks as a substitute but meticulous care is required. To make a choice, you have to conquer your fears. How is this a difference of ability? - Joseph’s “just my thoughts"
Post a Comment
Read more