A short post as I am currently studying for one of my final exams thats tomorrow morning. I read an article on Forbes.com that caught my attention titled "The Most Dangerous Lies Entrepreneurs Tell Themselves". It's defiantly an interesting read as the writer compares the psychological impulsive actions of individuals that think of short-term gain. He also goes into detail comparing compound interest.
"One example of this is the statement “life is short.” I hear it all the time. I understand why people say it. What they mean is “live life to the fullest.” But we don’t say that. We instead say “life is short.”
Of course, life is not actually short. For most Americans life is actually long (knock on wood). Average male lifespan in the US is 75 and average female lifespan is 80. But, when you internalize, literally, “life is short”, you can lure yourself into behavior that is harmful (especially financially) where you play for the short term when you need to play for the long term. Einstein is famously thought to have said that the most powerful force in the universe is compound interest. I believe that our dual misunderstanding of “life is short” and our inability to appreciate the value of compounding combine to lure people to make very bad investing decisions."
I dont think I need to continue further to see how this behaviour directly relates to my belief of sports betting: thing long term profit, not short term gains (don't make impulsive bets or chase losses).
Continue reading at: http://www.forbes.com/sites/bruceupbin/2012/05/11/the-most-dangerous-lie-entrepreneurs-tell-themselves/
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