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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”
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Just my thoughts #0497

Babies who are only six months old cannot walk. However, with a bit of training, this baby can swim in the water. Just because the baby can’t walk doesn’t mean the baby can’t swim. All humans are born in amniotic fluid in their mother’s womb when they are fetuses. It is normal for a 6-month-old baby to be unable to walk. Yet, the idea that the baby can’t even swim is a prejudice. Our stereotypes stem from taking things for granted. Imagination begins by doubting the obvious.


- Joseph’s “just my thoughts”




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