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

Skip to content
  • Home
  • Latest Posts
  • Collaboration Invite
  • Curated List
  • Terms and Conditions
  • Login
  • Motherlode

risk/reward

Volatility and risk – How the investment industry got it wrong

  • by Rodney Smith
  • Posted on July 13, 2025July 13, 2025
  • Part 1: The Field of Play

The riskiness of an investment is not measured by beta (a Wall Street term encompassing volatility and often used in measuring risk) but rather by the probability — the reasoned probability — of that investment causing its owner a loss of purchasing power over his contemplated holding period.

Read More

The price of risk in equity markets

  • by Rodney Smith
  • Posted on March 2, 2025March 7, 2025
  • Part 2: Human Foibles and Investment Decision Making

Mr. Market demands a very high expected return before he will invest in stocks. Whereas Mr. Bond suffers money illusion.

Read More

Luck and taking a flyer

  • by Rodney Smith
  • Posted on August 11, 2024August 11, 2024
  • Part 3: Thoughts for the Individual Investor

The notions of coherence, plausibility, and probability are easily confused by the unwary.

Read More

Let’s clear up misunderstandings about risk and volatility

  • by Rodney Smith
  • Posted on May 30, 2021January 29, 2023
  • Part 1: The Field of Play

A risky investment may be volatile, but not every volatile investment is risky.

Read More

Categories

How This Site Works

The site has two parts – Nuggets and the Investing Motherlode. Nuggets is a blog. The Motherlode is a rich resource and is only available to Subscribers (free). To subscribe, click on the Login tab or on any link within the Motherlode and fill in the form. You can also subscribe, for free, to a monthly newsletter, Nuggets of Investing Wisdom, right to your inbox.

 

Privacy & Cookies: This site uses cookies. By using the website you consent to their use, and to the Terms and Conditions described in this link, and also available from the menu bar at the top of the page. Terms & Conditions

Loading Comments...

You must be logged in to post a comment.