"Risk is like a roulette wheel. You do not know the outcome of the next spin, but you know the distribution. You know there are a set number of pockets, and it is possible to accurately calculate the odds of where the ball will come to rest. Uncertainty, however, is having no idea how many pockets are on the wheel, or if the wheel is even round."
"A perfect world is scary for stocks and a scary world is perfect for stocks."
"The first rule of compounding is to never interrupt it unnecessarily."
"Is the market expensive? The question never goes away. Stocks don’t exist in a vacuum; to be overvalued means to be too expensive relative to the alternative options (bonds), or to history, or to other geographies. They are ultimately worth what someone is prepared to pay for them, and so valuation per se is never any use for timing."
"A perfect world is scary for stocks and a scary world is perfect for stocks."
"The first rule of compounding is to never interrupt it unnecessarily."
"Is the market expensive? The question never goes away. Stocks don’t exist in a vacuum; to be overvalued means to be too expensive relative to the alternative options (bonds), or to history, or to other geographies. They are ultimately worth what someone is prepared to pay for them, and so valuation per se is never any use for timing."