May 13, 2016

Stock Investing is a Boxing Match



Today, Dr. Stern got injured in his weekly boxing match with his usual sparring partners. You can see the red marks on his chin in the video. What does this have to do with stock investing? A lot.

Everybody knows you will get injured on occasion if you play sports. Nobody recommends avoiding sports just to avoid injuries. Why? Because the benefits and rewards are well worth the potential risks in most cases.

The same is true when investing in stocks. You will lose on your stock investments from time to time. But, to recommend staying out of the stock market just because of the risks does not make sense because, just like in sports, the rewards are well worth the risks.

You only live once and should live your life consciously aware of all the risks involved. In sports, take the risk to "just do it" as Nike puts it so pointedly. In stocks, take the risk to "just buy it", as we like to say at Obermatt.

This is not a recommendation to only play high-risk sports and buy high risk-stocks. Go for a majority of safe sports and go for a majority of safe stocks and the rewards will be worth the risks.



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