The weird and wonderful world of investing in the stock markets
Q: Why is stock market investing so difficult? A: [Because] it mixes high stakes with strong emotions, intelligence with luck and long-term innovation with short-term trading. — Morgan Housel Q: Why is luck so important when it comes to success? A: In much of life, doing things right over and over again is a sign of skill; expert musicians, for instance, rarely hit a wrong note. And the skill of one professional musician doesn’t make it harder for the others to be equally expert. But in the financial markets, where so many investors are highly skilled, their actions cancel each other out as they quickly bid up the prices of any bargains — paradoxically making luck the main factor that distinguishes one investor from another. — Peter Bernstein Q: Why is the financial world full of noise and nonsense? A: The financial system’s incentive structure is set up so that as long as analysts sound smart and pretend they know why stock xyz is going up, they get rewarded.This holds true for all...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.