On this article, I’ll stroll you thru a probabilistic thought experiment. It will assist you admire some key investing ideas:
- SURVIVAL is vital
- we’d like LONG TERM focus
- the LUCK vs SKILL conundrum, and
- the CERTAINTY vs UPSIDE trade-off.
Think about now we have 101 shares in entrance of us. Of those, 1 is “Secure.” The opposite 100 are “Dangerous.” We all know which is which. The Secure inventory grows 10% yearly like…