No. of Recommendations: 22
Tell me what about those results makes investing in the averages seem “prudent” to you?

Investing in the averages eliminates the risk of permanent capital loss from an individual business
going kaput. Note: That's not the same as volatility, where you put aside some money to weather a
downturn until your stocks bounce back. If one or more of your companies goes kaput there is no
bounce back. It's a permanent loss of your capital. Investing in the averages avoids this risk.
In exchange, the average investor has to settle for more modest returns. Many investors are willing
to make that tradeoff because even modest results will get them safely to retirement.

You're playing a different game than the average investor. There's nothing foolish about your game,
but the comparison to the average investor is more likely to fool you than benefit you. Imagine a
casino offered you either of two games -- Blackjack or Russian Roulette. For Blackjack they offer
normal odds, but for Russian Roulette they offer to pay you $1 million for each successful pull of
the trigger. If you suddenly got unlucky at Russian Roulette, would it matter how much the Blackjack
players were making?

Ears
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