Greed and fear are both good and healthy for an investor and capital markets as a whole. Emotions are like fire, beneficial if controlled, destructive if wild.

You must not be a seller if not a buyer in a massive down-turn.

A Collectible’s value is primarily based on the emotions and the perception of potential buyers.

It is a common misconception that if you diversify, you don’t need to learn anything. Just buy a bunch of stocks, and you will be good. Nothing can be further from the truth.

Diversification does not guarantee protection from losses. It provides a weighted-average return of the portfolio.

The funny thing about using the last transaction price as a proxy for the fair value is; that even the two people, buyer, and seller, who caused the transaction do not agree that the transaction price is the fair value of that stock. They have opposite views about the real value.

The perceived risk and actual risk are two different things.

It is impossible to say whether an asset class valuation is cheap or expensive in isolation. The valuation of an asset is relative to the valuations of all other assets.

It is always better to avoid hyped stocks and desire to double your money in no time.