Motley Fool Money Making Cash vs Preserving Money
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May 14, 2023 John M. Jennings, president of St. Louis Trust & Family Office and professor at Washington University, shares his insights on investment strategies. He reveals why improbable market events are common and highlights a crucial trait among top-performing stocks. Jennings also discusses the advantages of 'fast followers' over pioneers in business. With a focus on wealth creation versus preservation, he emphasizes the importance of discipline and simplicity in managing investments, especially in unpredictable markets impacted by emerging trends.
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Improbable Happens Often
- The improbable happens all the time due to the sheer volume of daily occurrences.
- Prepare for unpredictable events in investing and life.
Stock Market Complexity
- The stock market is a complex adaptive system with many inputs and unpredictable outputs.
- This makes predicting market behavior extremely difficult due to the heterogeneous and intelligent actors involved.
Toilet Paper Hoarding
- During the pandemic, toilet paper hoarding became rational individual behavior.
- This created a system-wide shortage, highlighting unpredictable outcomes in complex systems.
