November 5, 2005

Good post on ‘Understanding Risk & Fear of Consequence’

Saw a good post by arpit ranka who has a good blog on Value investing & Behaviorial finance.

This post reminded me of a comment by warren buffett on risk and tendency of investors to gamble everything on a single decision/ event ( The LTCM episode – where the hedge fund was full of these super brilliant guys, but still blew up)

from memory – ‘I have never understood why one would bet everything he has for something he does not need’

No comments: