Volatility and Investment: The phenomenon where an asset’s price fluctuates over time is called volatility. Owning and reselling this volatile asset is known as an investment. The concept of buying and reselling an asset often causes us to overlook the fact that this process involves a trade-off between low-volatility and high-volatility assets. Cash is less volatile than stocks, and stocks are relatively more volatile. In other words, investing involves exchanging low-volatility assets for high-volatility assets and then switching back to low-volatility assets. Meanwhile, surplus profit is generated by the price differences caused by volatility. What would happen if we traded only highly volatile assets with each other? We would probably hesitate to exchange assets and might refrain from investing. In investing, there must be both low-volatility and high-volatility assets. - Joseph’s “just my thoughts”
Experience should not serve as a constraint that confines individuals to their past; instead, it should act as a foundation for future endeavors. While successful experiences can instill confidence, they may simultaneously restrict one’s thoughts and actions, leading to potential lapses in judgment. It is noteworthy that my achievements may not have solely stemmed from my abilities but could have been attributed to fortuitous circumstances, often arising from the missteps of others. A valuable experience should not foster arrogance or dismiss the fallibility of unwavering self-assurance and disregard for alternative perspectives. To mitigate the risk of failure, one must cultivate humility. - Joseph’s “just my thoughts”