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Dave,

You raise a point that I've argued before in this forum with those who are investing from a position of emotional weakness. Their perceived margin for error is so narrow that they think they can't afford to lose much money. So they commit the equally egregious errors of (1) pricing the future to perfection, (2) not taking on sufficient risk to meet their financial goals, (3) assuming that by calling themselves "investors" they aren't gambling, etc. etc.

How well have those people done in the last ten years? If the results from studies such as those done by Darbar are representative, the dour and dowdy crowd (who resent the fun anyone else might be having with their investing) have only earned the thin gruel they sought, i.e., returns not much better than cash. Whereas those who take a more relaxed attitude and who "play the game" --and who know they are playing a game-- have done quite well for themselves. In other words, "Being scared to lose is being scared to win."

As for having backups, not only do I have them, I have backups to my backups. Buying Geico's bond was part of them. Now it is trading at a huge premium to par, and I'm trying to blow it out, so I can put the money to better use elsewhere.

Charlie
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