Money and Randomness

Created

Enough

  1. People rarely become millionaires from earning a big salary
  2. Best chance of increasing your net worth is owning a company
  3. Compounding your money on a tax-deferred basis is preferable to earning high income
  4. Your own knowledge of an industry is a valuable resource
  5. Risk and reward should be matched

Randomness

Randomness occurs from

  • inaccurate measurement of non-random events.
  • sampling from a population
  • true statistical fluctuations

Understanding very basic concepts of randomness will help you in every day life

  • assessing