“Investing is not predicting the future, but pricing for uncertainty.” 💡
Many people think that investment experts are guessing what will happen in the future, but what real experts are doing is:
Assessing the probabilities of different outcomes
Determining whether the current price underestimates or overestimates the risk
Placing bets when the odds are in their favor
In other words:
Good investments are not about being right every time, but about having the long-term odds in your favor.
📌 You can remember today's statement as a simple formula:
Investment Return = Probability × Odds