22 Quotes by Peter L. Bernstein

God is, or he is not. Which way should we incline? Reason cannot answer.

We are by now well into the eighteenth century, when the Enlightenment identified the search for knowledge as the highest form of human activity. It was a time for scientists to wipe the metaphysical dust from their eyes.

You never get poor by taking a profit.” It would follow that cutting your losses is also a good idea, but investors hate to take losses, because, tax considerations aside, a loss taken is an acknowledgment of error. Loss-aversion combined with ego leads investors to gamble by clinging to their mistakes in the fond hope that some day the market will vindicate their judgment and make them whole.

Eight years later, Daniel Bernoulli, Jacob’s nephew and an equally distinguished mathematician and scientist, first defined the systematic process by which most people make choices and reach decisions. Even more important, he propounded the idea that the satisfaction resulting from any small increase in wealth “will be inversely proportionate to the quantity of goods previously possessed.” With.