Saturday, December 02, 2006

On Hope (Major Axiom III)

Major Axiom III: When the ship starts to sink, don't pray. Jump

Minor Axiom IV: Accept small losses cheerfully as a fact of life. Expect to experience several while awaiting a large gain.

------------------------------------------
Obstacles: fear of regret, unwillingness to abandon part of an investment, and difficulty in admitting a mistake.

-----------------------------------
L comment: Studies in Behavioral Finance focus on the emotional issues noted in Obstacles. This is one axiom with which I have not quibbles.

No comments: