Some Common Cents for August 26th, 2016

August 29, 2016, by John Norris

Gambling is a word with a lot with a lot of connotations, but only one real meaning: taking some measure of risk in order to achieve some sort of return. You can define risk and return any number of different ways, and at many different levels. Obviously, you want to make sure the risk you take is less than the reward you expect. This is called playing the odds, and we do just that in...

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Common Cents for September 28th 2012

November 1, 2012, by John Norris

If you read the news enough, you could conclude the world increasingly doesn’t understand the very basic risk/reward paradigm. Essentially, the amount of reward you receive is commensurate with the amount of risk you take. To businesspeople, this makes perfect sense; it is how it should be. That is how you create wealth: you take risk. It helps if you are insanely brilliant and devilishly attractive, but, where the rubber meets the road, the common...

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Common Cents for September 21st 2012

, by John Norris

When is this rally going to end? That is what a lot of investors want to know. After all, the recent spike in stock prices has been a little, shall we say, surprising. If the economy is so weak the Federal Reserve feels the need to dump another couple hundred billion onto the fire, why then are investors so keen to buy equities? In a simpler time, this might not make sense; however, this is...

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