Chapter 1: Tea Leaves, Ouija Boards & Tarot Cards

CONTRARY TO POPULAR “WISDOM”, investing isn’t about P/E ratios, or technical patterns, or momentum plays, or “5 star ratings,” or the latest conflict in the Middle East.  Investing is about probabilities and statistics.  It’s about maximizing the probability of meeting the goals you have set for the only life you have to live on this planet.  It’s about avoiding the (many) risks that have negative expected payoffs, and exposing yourself only to those risks that have positive expected payoffs – and then, only to the extent that taking those risks buys you something of value (like achieving your most important lifestyle goals).

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