The Science of Investing??

If you're going to invest money in something you want to be entirely certain in what you're doing. You want to cross every t and dot every i. You want to know every number there is to know.

Some even take pride in their track record. It gets to the point where they are superconfident and superintense in their business dealings. You cannot, ever, get anything wrong.

Gambling?

At the other end of the extreme, is a belief that business and investing is like gambling. There are odds. There is always the 'god of chance'. There is always a risk and life is said to be akin to a game of Russian Roulette!

Occassionally heard is the businessman who earns a windfall or a bucketload, and then squanders it all in the nearby casino. For all his business acumen, it is lost overnight in millions as the house always wins.

Risk versus Rewards

The truth of the matter may be that every business or investing venture may be a consideration of assymetric rewards, when compared to the risk involved. Every business venture and investment is a calculated consideration to reward a person for taking it on. And it is a discipline all in itself to both accept that there are certain things you cannot control, and to acknowledge the dangers of what you are taking on without it being debilitating or paralysing.

If this is a subject-matter that interests you, you may wish to dwelve into the book by former professional poker player, Annie Duke - Thinking in Bets. The books is at pains, for instance that you acknowledge that in business and in life, you do not have all the information all the time to make an educated guess and decision. Yet a decision you must make indeed to do well in the game.

Having achieved success in poker, Duke is engaged by businesses around the world to explain how poker is applicable to business and investing life.

I hope you enjoy the book - please leave a comment, question or like in the comments section below if you would like to discuss!