Mittwoch, 20. Januar 2010

More Than You Know by Michael J. Mauboussin

These days I have started reading a book which has a nearer focus on investments, than the books I usually read. I'll start with a quote of a quote out of it:

The only certainty is that there is no certainty. This principle is especially true for the investment industry, which deals largely with uncertainty. In contrast, the casino business deals largely with risk. With both uncertainty and risk, outcomes are unknown. But with uncertainty, the underlying distribution of outcomes is undefined, while with risk we know what that distribution looks like. Corporate undulation is uncertain; roulette is risky.

by Robert Rubin, former Tresury Secretary.

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