Simple Concepts Research Group

Investing Quotes & Insights: August 1, 2021

by | Aug 1, 2021 | Insights

Two investing quotes and two questions to consider on your journey to wealth creation.

man on rope

“Risk cannot be destroyed, only transformed. So when you decide not to make a big move you are also taking a risk, but that risk happens far later in time.”

Avoiding taking action does not get rid of risk. You may simply be putting risk off to deal with in the future. As investors, we have to consider risk carefully. We cannot completely avoid risk by not actioning an idea that we know is likely reasonable. For instance, cash in your portfolio is a great way to avoid market risk. But, having too much uninvested cash, over long periods of time, can severely depress your long term wealth. We must be risk conscious without being action averse.

photo of woman climbing mountain

“Information is not powerful. Information is only potentially powerful. Action is powerful.”

The internet has democratized information and knowledge. But what the internet has not done is made humans smarter by providing access to more information. Remember to take action on ideas that are worthwhile and that are likely to provide a positive upside. It’s pointless to have a library of information that you’ve never put action behind.

Two Questions to Consider:

  • What great idea do I have that I have not yet taken action on? How can I start today?
  • What sources of information can I eliminate that are no longer serving my interests (i.e. subscriptions to things that I never read)?