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Theory Quotes

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Theory Quotes

“Science may be weird and incomprehensible--more weird and less comprehensible than any theology--but science works. It gets results. It can fly you to Saturn, slingshotting you around Venus and Jupiter on the way. We may not understand quantum theory (heaven knows, I don't), but a theory that predicts the real world to ten decimal places cannot in any straightforward sense be wrong.”

“For the theory-practice iteration to work, the scientist must be, as it were, mentally ambidextrous; fascinated equally on the one hand by possible meanings, theories, and tentative models to be induced from data and the practical reality of the real world, and on the other with the factual implications deducible from tentative theories, models and hypotheses.”

“We come finally, however, to the relation of the ideal theory to real world, or "real" probability. If he is consistent a man of the mathematical school washes his hands of applications. To someone who wants them he would say that the ideal system runs parallel to the usual theory: "If this is what you want, try it: it is not my business to justify application of the system; that can only be done by philosophizing; I am a mathematician". In practice he is apt to say: "try this; if it works that will justify it".”

“General Systems Theory is a name which has come into use to describe a level of theoretical model-building which lies somewhere between the highly generalized constructions of pure mathematics and the specific theories of the specialized disciplines. Mathematics attempts to organize highly general relationships into a coherent system, a system however which does not have any necessary connections with the "real" world around us. It studies all thinkable relationships abstracted from any concrete situation or body of empirical knowledge.”

“The possibility that stock value in aggregate can become irrationally high is contrary to the hard-form "efficient market" theory that many of you once learned as gospel from your mistaken professors of yore. Your mistaken professors were too much influenced by "rational man" models of human behavior from economics and too little by "foolish man" models from psychology and real-world experience.”

“Finding a single investment that will return 20% per year for 40 years tends to happen only in dreamland. In the real world, you uncover an opportunity, and then you compare other opportunities with that. And you only invest in the most attractive opportunities. That's your opportunity cost. That's what you learn in freshman economics. The game hasn't changed at all. That's why Modern Portfolio Theory is so asinine.”

“This is often the way it is in physics - our mistake is not that we take our theories too seriously, but that we do not take them seriously enough. It is always hard to realize that these numbers and equations we play with at our desks have something to do with the real world. Even worse, there often seems to be a general agreement that certain phenomena are just not fit subjects for respectable theoretical and experimental effort.”