Investing Wisdom

Here are a few gems form morning readings:

1. The biggest risk is not taking the risk at all.
    "It is one thing to be aware of the potential for terrible things to happen, it is quite another to give up on life      and opportunity altogether." http://www.ritholtz.com/blog/2014/02/everything-you-need-to-know-about-stock-market-crashes/

2. Go for the long term because successful investing is a lifetime pursuit
   "After seeing these charts and this evidence of futility, you might be asking yourself the following: If anyone can win and anyone can lose at any time in the markets, why bother trying at all?

Fair question. But I submit to you that successful investing is a lifetime pursuit, and in the end, it’s the pursuit itself that offers the rewards along the way. The destination was never the thing – most of us aren’t meant to end up as Peter Lynch or Warren Buffett. No, it was what you learned on the way there that made all the difference. As the poet C.P. Cavafy reminds us:

Ithaka gave you the marvelous journey.
Without her you would not have set out.

A lifetime of outperforming the markets is unattainable for most. But a lifetime of self-improvement and the acquisition of skill and knowledge – that’s available for anyone who’s willing to go for it."

http://www.thereformedbroker.com/2014/02/17/the-best-and-worst-thing-about-investing/

3. Neither efficient market nor irrational behavior:  rational response to risk can create market inefficiency:

http://politicalcalculations.blogspot.com/2014/02/a-rational-and-inefficient-noise-event.html#.UwN8XdxJNwg