To boil it all down to just one sentence, I’d say the necessary condition for the existence of bargains is that perception has to be considerably worse than reality. That means the best opportunities are usually found among things most others won’t do. After all, if everyone feels good about something and is glad to join in, it won’t be bargain-priced.
Note: identified risks are usually overdiscounted by the market.
Mujo was defined classically for me as recognition of “the turning of the wheel of the law,” implying acceptance of the inevitability of change, of rise and fall.... In other words, mujo means cycles will rise and fall, things will come and go, and our
Note: Change is the only constant, but change is never random. It follows the eternal laws of cyclicality.
One of the great things about investing is that the only real penalty is for making losing investments. There’s no penalty for omitting losing investments, of course, just rewards. And even for missing a few winners, the penalty is bearable.
Note: "Yes" Man in Life, "No" Man in the Investment World
Being early provided a good reminder about the pain involved in being too far ahead of your time. Having said that, it was much better to get off too soon in May 2005 than to stay on past May 2007.
Note: Being early is not different than being wrong