Nuggets of Investing Wisdom

Nuggets of Investing Wisdom

A website for serious investors in common stocks – Read by investors in over 150 countries around the world

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law of large numbers

The Law of Small Numbers for investors per Daniel Kahneman

  • by Rodney Smith
  • Posted on June 30, 2025June 30, 2025
  • Part 2: Human Foibles and Investment Decision Making

The strong bias toward believing that small samples closely resemble the population from which they are drawn is also part of a larger story: We are prone to exaggerate the consistency and coherence of what we see.

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A coward’s primer for investors per Paul Samuelson

  • by Rodney Smith
  • Posted on June 25, 2025June 29, 2025
  • Part 7: Building and Managing a Portfolio

Kahneman is telling us that an ordinary person might, without being thought silly or irrational or cowardly, reject the single bet but decide to take on the 100-bet game.

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