“Whenever I take a position, I like to imagine what it would be like under the worst-case scenario. In doing so, I minimize the confusion if that situation actually develops. In my view, losses are a very important part of trading. When a loss happens, I believe in embracing it.” IfsBelieveImportantHappensWould BeI BelieveLossViewsSituationCasesImagineWorstPositionI Believe InConfusionTradingScenariosWorst Case Scenario Author:Gil Blake
“He who blinded by ambition, raises himself to a position whence he cannot mount higher, must thereafter fall with the greatest loss.” FallLossPositionHigherAmbitionRaisesMy AmbitionBlinded Author:Niccolo Machiavelli
“The people who survive avoid snowball scenarios in which bad trades cause them to become emotionally destabilized and make more bad trades. They are also able to feel the pain of losing. If you don't feel the pain of a loss, then you're in the same position as those unfortunate people who have no pain sensors. If they leave their hand on a hot stove, it will burn off. There is no way to survive in the world without pain. Similarly, in the markets, if the losses don't hurt, your financial survival is tenuous.” PeopleIfsWorldWayFeelsHandsAblePainCausesHurtLossPositionSurvivalLosingHotTradeFinancialUnfortunateScenariosNo PainStovesWithout PainSnowballSensors Author:William Eckhardt
“A price decline is of no real importance to the bona fide investor unless it is either very substantial say, more than a third from cost or unless it reflects a known deterioration of consequence in the company's position. In a well-defined bear market many sound common stocks sell temporarily at extraordinary low prices. It is possible that the investor may then have a paper loss of fully 50 per cent on some of his holdings, without any convincing indication that the underlying values have been permanently affected.” WellsMayHas BeensRealValuesSoundLossCommonCompanyKnownPositionBearsCostPaperLowsConsequenceThirdsImportanceSellsExtraordinaryDefinedAffectedInvestorsDeclineCentsConvincingIndicationDeterioration Author:Benjamin Graham
“Research is the live heart of the scientific life ... Greatness of position, respect for past accomplishments, the Nobel Prize itself -- none of these can compensate for the loss of vitality only research provides.” HeartPastLossPositionGreatnessResearchAccomplishmentPrizeVitalityNobelNobel Prize Book:Women in Science: Then and Now Source: Women in Science: Then and Now
“So much of my self worth was tied with my position. It felt like I was being enveloped in darkness. It was a sense of loss of enthusiasm, a loss of happiness, a significant decline in self worth.” SelfFeltLossDarknessPositionSignificantSelf WorthEnthusiasmDeclineTiedMy Self Worth Author:Tom Johnson
“Better risk loss of truth than chance of error--that is your faith-vetoer's exact position. He is actively playing his stake as much as the believer is; he is backing the field against the religious hypothesis, just as the believer is backing the religious hypothesis against the field.” FaithReligiousChanceLossRiskFieldsPositionErrorsBelieverStakesHypothesis Book:James and Dewey on Belief and Experience Source: James and Dewey on Belief and Experience
“The word "jealousy" is often used as if it were synonymous with envy; but I think the distinction worth preserving. Jealousy is predominantly concerned with the fear of loss of something one possesses, envy with the wish to own something another possesses. Othello suffers from the fear that he has lost Desdemona's love. Iago suffers from envy of the position held by Cassio, to which he feels entitled.” IfsThinkingFeelsUsedSufferingLostWishLossPositionConcernedEnvyJealousyDistinctionEntitledDesdemona Author:Anthony Storr
“I won't close down a business of subnormal profitability merely to add a fraction of a point to our corporate returns. I also feel it inappropriate for even an exceptionally profitable company to fund an operation once it appears to have unending losses in prospect. Adam Smith would disagree with my first proposition and Karl Marx would disagree with my second; the middle ground is the only position that leaves me comfortable.” FeelsFirstsLossBusinessCompanyMiddlePositionReturnComfortableAddCorporateOperationsFundDisagreeAdamPropositionsLeaving MeProfitableFractionsInappropriateUnendingMiddle GroundProfitability Author:Warren Buffett