Novel Investor • Compounding investing wisdom...

Novel Investor. A site dedicated to the journey of learning and sharing timeless investing wisdom..

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Novelinvestor.com news digest

  • 14 days

    Weekend Reads – 4/19/24

    Quote for the Week
    As Justice Holmes pointed out, though, “Certitude is not the test of certainty.” What I believe will happen in financial markets and what ends up happening have no necessary relationship. The future is uncertain, and the returns investors earn will depend...

  • 15 days

    Challenging the Process

    Investing, by nature, makes it hard to separate good decisions from good luck. Uncertainty, randomness, and noise muddy results. Anything can happen in markets in the short run.
    In addition, human nature drives us to be outcome-biased. We tend to judge decisions based on the outcome instead of on the quality of the decision made....

  • 21 days

    Weekend Reads – 4/12/24

    Quote for the Week
    Volatility matters on only two levels. First, if two portfolios have equal average returns, the portfolio with the lower volatility will earn the higher compound return. On the other hand, investors understand this phenomenon – either intellectually...

  • 23 days

    How to Avoid Losses in Your Investing by FPS

    Buy the Book: eBook
    The book, published in 1920, shows how little human nature changes in markets, especially around speculation, gambling, and greed. It also offers historical context on how markets operated pre-SEC and warns about the dangers of widespread leverage that...

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