Learn more about economics with this collection
The impact of opportunity cost on personal and professional life
Evaluating the benefits and drawbacks of different choices
Understanding the concept of opportunity cost
Inefficiency is a necessary condition for superior investing. Attempting to outperform in a perfectly efficient market is like flipping a fair coin: the best you can hope for is fifty-fifty. For investors to get an edge, there have to be inefficiencies in the underlying process - imperfections, mispricings-to take advantage of.
BOTTOM LINE
22
380 reads
MORE IDEAS ON THIS
The random walk hypothesis says a stock's price movements are of absolutely no help in predicting future movements. In other words, it's a random process, like tossing a coin. The hypothesis says, the fact that a stock's price has risen for the last ten days tells you nothing ...
EUGENE FAMA
17
81 reads
An excellent investor may be one who - rather than reporting higher returns than others - achieves the same return but does so with less risk or even achieves a slightly lower return with far less risk.
UNKNOWN
18
98 reads
BRIEF
- There is nothing wrong with trying to make money . Indeed, the desire for gain is one of the most important elements in the workings of the market and the overall economy. The danger comes when it moves on furher to greed.
- People who don't care a...
20
128 reads
CURATED FROM
CURATED BY
Related collections
More like this
Warren Buffet's Investing Philosophy
- Buffett takes this value investing approach to another level.
- Many value investors do not support the efficient market hypothesis (EMH) . This theory suggests that stocks always trade at their fair val...
Being "fairly" judged
It’s impossible to be fairly judged. Nobody will ever understand you perfectly. You will continually be both underestimated and overestimated.
Your own assessment of yourself is hardly the “right” one. We tend to either obsess over our faults or overlook the...
Forming the habits of an investor
Investors put their money to work. They know that the money they set aside today sets them up for financial freedom.
- An investor puts any excess money towards investments that will earn more capital.
- They value learning new skills and think of ways to use it...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving & library
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Personalized recommendations
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates