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The story of Shader and Hornik serves as a warning to stand on guard against mimetic valuations. It’s the Paradox of Importance: sometimes the most important things in our lives come easily—they seem like gifts—while many of the least important things are the ones that, in the end, we worked the hardest for.

Wanting

Luke Burgis

It can be a bit confusing in the abstract, so let’s look at a recent example from my own life: The Arena: Physical Fitness Traditional Goals: • Run a 6-minute mile • Under 8% bodyfat • Deadlift 500 pounds Perhaps overly-ambitious at 31, but I think doable if I’m dedicated!

I Started Establishing “...

@SahilBloom on Twitter

Graham’s answers, as always, are rooted in logic and common sense. The value of any investment is, and always must be, a function of the price you pay for it. By the late 1990s, inflation was withering away, corporate profits appeared to be booming, and most of the world was at peace. But that did not mean—nor could it ever mean—that stocks were worth buying at any price. Since the profits that companies can earn are finite, the price that investors should be willing to pay for stocks must also be finite.

The Intelligent Investor, Rev. Ed

Benjamin Graham, Jason Zweig

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