Quotes About Risk

Two-thirds of professionally managed funds are regularly outperformed by a broad capitalization-weighted index fund with equivalent risk, and those that do appear to produce excess returns in one period are not likely to do so in the next. The record of professionals does not suggest that sufficient predictability exists in the stock market to produce exploitable arbitrage opportunities.

For many of us, trying to outguess the market is a game that is much too much fun to give up. Even if you were convinced you would not do any better than average, I'm sure that most of you with speculative temperaments would still want to keep on playing the game of selecting individual stocks with at least some portion of the money you invest.

Finding the next Warren Buffett is like looking for a needle in a haystack. We recommend that you buy the haystack instead, in the form of a low-cost index fund.

And if you buy the new issue after it begins trading, usually at a higher price, you are even more certain to lose.

Kahneman and Tversky concluded that losses were 2½ times as undesirable as equivalent gains were desirable. In other words, a dollar loss is 2½ times as painful as a dollar gain is pleasurable. People exhibit extreme loss aversion, even though a change of $100 of wealth would hardly be noticed for most people with substantial assets. We'll see later how loss aversion leads many investors to make costly mistakes.

Love is dangerous, if you know it's dangerous, that makes you treasure it, and you'll work harder to keep it.

Unfortunately, pioneers will always pave the way with sacrifices.

I'm convinced that sending people to Mars is so expensive that if you go once and bring the people back and then go again and bring the people back, we're eventually going to run out of money. But what if we send people the first time and they don't come back? What if they stay there?

Oh, sure, I've come close to dying a few times, but usually I was having so much fun at the time that I barely noticed the danger.

That risks were involved, all of us knew; but none, so far as we could foresee, that were too great. Otherwise, as leader of a big polar expedition, and subject to all the responsibilities implicit in command, I could not have gone. That I miscalculated is proved by the fact that I nearly lost my life. Yet, I do not regret going

Don't be careful. You could hurt yourself.

Don't be careful. You could hurt yourself.

I have a notion that gamblers are as happy as most people, being always excited; women, wine, fame, the table, even ambition, sate now & then, but every turn of the card & cast of the dice keeps the gambler alive.

It takes courage for a fruit to fall far from her tree.

La mera negativa era demasiado aleatoria, porque a veces la nada puede ser la respuesta acertada, y yo jamás habría dejado mi suerte en manos del azar.

It was hard to believe that this was a route used virtually throughout the year by travelers, mule drivers and merchants. Anyone in their right mind would have regarded it as a means of suicide. Near the watershed, at an altitude of two thousand meters, amid peaks disappearing into the clouds, rather than a way of getting from point A to point B, the path seemed to have become quite simply a way of departing from all points at once.

We ought not be over anxious to encourage innovation, in case of doubtful improvement, for an old system must ever have two advantages over a new one; it is established and it is understood.

If there is ever a choice between money and adventure, choose adventure.

Don't be afraid of your fears. They're not there to scare you. They're there to let you know that something is worth it.

Patience is often merely the guise of Cowardice.

To love at all is to be vulnerable.

You can fall out of your own safe life that quickly, and nothing you thought you knew will ever be the same again.

One forgets the fear of heights when one cannot fall

In such doubtful matters, where you have to work as a pioneer, you must be able to put some trust in your intuition and follow your feeling even at the risk of going wrong.