"The biggest wins are almost always long. 100→1 is tougher for compounding than 1→100." – Evan Goldfine
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This seems to apply to more than investing. It's why it's better to be a foolish-seeming optimist than a clever cynic.
If the optimist is right, he gets the further advantages of applying the idea. The cynic only gets to say "I told you so."
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Optimism compounds better than cynicism.
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This analysis is complicated somewhat by the large number of broke optimists and well-off (if not wealthy) cynics. Cynicism is safer.
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the investors who shorted the housing market made serious returns
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Only after thousands of others had the trade on and got stopped out.
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@migueldeicaza "He or she"Thanks. Twitter will use this to make your timeline better. UndoUndo
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@migueldeicaza the cynic doesn't waste their time on failures. -
or successes
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quality of opportunity over quantity I guess.
Thanks. Twitter will use this to make your timeline better. UndoUndo
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@manualofideas And if the optimist is wrong?? -
Many situations in life are not black and white -- it's the journey, not the destination. Optimists enjoy the journey more.
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