“Consider a turkey that is fed every day. Every single feeding will firm up the bird’s belief that it is the general rule of life to be fed every day by friendly members of the human race ‘looking out for its best interests,’ as a politician would say. On the afternoon of the Wednesday before Thanksgiving, something unexpected will happen to the turkey. It will incur a revision of belief.*”
― Nassim Nicholas Taleb, The Black Swan: The Impact of the Highly Improbable
Does anything from your recent experience make you feel like Taleb’s poor turkey on the fateful Wednesday before Thanksgiving? Say February 2020, when stocks plummeted from all-time highs to a sharp correction in a matter of days? Or maybe you think of September 2008, when the entire financial system was brought to its knees?
If you feel like you’ve incurred your own “revision of belief” over the past few years — the entire global financial system can’t just collapse overnight, modern science will keep us safe from a little virus, the greatest democracy in the world never has to think twice about a peaceful and orderly transition of power – you’re not alone. Read more…..
Chart of the Day
Warren Buffett has been my investing idol ever since I started investing. So I wanted to share this video with you guys today which goes over 6 investing rules when picking out stocks to own.