reminders about irrationality of the market and knowing our limits

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 Some reminders never go out of date.

do we know our circle of competence

We have limited knowledge, funds and time to research. Overhearing a conversation at a bar is not research. what we know is good but what we think we know can be a pitfall. Do not move away from what we understand in-depth.

markets can stay irrational for a very, very long time

"The market can remain irrational longer than we can remain solvent" - John Maynard Keynes 

The price of a stock does not always reflect the value of the business. But when a sufficient difference is in our favour, we can consider buying or selling.

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