• “I don’t have time to worry about who doesn’t like me…I’m too busy loving the people who love me.” Charlie Brown
  • “Several Academic experiments have demonstrated that for studied investors, a loss bothers them twice as much in absolute terms than the pleasure from an equal gain. An investor who loses $10,000 on a specific stock feels twice as much pain than if that person had $10,000 profit (reward) on the same exact investment.” Ricciardi, Victor, The Psychology of Risk: The Behavioral Finance Perspective. HANDBOOK OF FINANCE: VOLUME 2: INVESTMENT MANAGEMENT AND FINANCIAL MANAGEMENT, Frank J. Fabozzi, ed., John Wiley & Sons, pp. 85-111, 2008
  • “A study conducted by San Diego State University professor John Ayers appeared in the February 2014 issue of the American Journal of Preventive Medicine. This study dramatically shows how the ill effects of the stock market cause ulcers, migraines, and even hospitalization of stressed investors. The research compared the cumulative internet searches of “stress maladies” during the Great Recession to the years leading up to this time frame.” How a Lousy Economy Can Make You Sick, Gil Weinreich
  • “The 2014 Dalbar report specifically stated that: “Attempts to correct irrational behavior through education have proved to be futile. The belief that investors will make prudent decisions after education and disclosure has been totally discredited.” In plain English, Dalbar is simply stating the obvious heuristic behavior of herding: consumers invest when the market is high and sell when it is low.” Investor Education Is ‘Futile,’ ‘Totally Discredited’: Dalbar, Gil Weinreich
  • “BETA:
    • A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.
    • A beta of 1 indicates that the security’s price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security’s price will be more volatile than the market.
    • For example, if a stock’s beta is 1.2, it’s theoretically 20% more volatile than the market.” Managing Portfolios in Uncertain Times 

    “ALPHA:

    • A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund (stock) and compares its risk-adjusted performance to a benchmark index.
    • The excess return of the fund relative to the return of the benchmark index is a fund’s alpha.

    ·A positive alpha of 1.0 means the fund has outperformed its benchmark index by 1%. Correspondingly, a similar negative alpha would indicate an underperformance of 1%. Likely does not exist after taking fees into account.” Beta, Will Kenton