October 27, 2009

Shoulda bought more!

To my considerable surprise, it turns out that my favorite quantum mechanics book, that we've quoted from and referred to here, is out of print and selling for more than ten times what I paid for it.

"Shoulda bought more!"

Have you heard that line before? And are you familiar with "investment analysis for neurotics"?

It goes like this: Either you buy the stock, or you don't; then, either it goes up, or down.

So:
  • If you buy the stock, and it goes up, you shoulda bought more.
  • If you buy the stock, and it goes down, you shouldn't have bought it.
  • If you don't buy the stock, and it goes up, you shoulda bought some.
  • If you don't buy the stock, and it goes down, see, you were smart.
So (according to this analysis-for-neurotics), there's only one way to be smart in investments, which is not to buy things that go down.

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