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Dollarlogic by Andy Martin

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 ~ DAY 1 ~ 

Risk ≠ Reward—Understand Risk:

It Is Not What You Think

“To him who looks at the world rationally the world looks rationally back.”

—Georg Wilhelm Friedrich Hegel

Risk does not equal reward.

The phrase is illogical. Instead, if you wish to unite the words to their meanings, the phrase should read risk = risk, or reward = reward. Any other association of the words is sophistry or salesmanship. The investment industry, being the chief promoter of this errant formula, should stop using it, because it is misleading and simply wrong.

Philosopher Ludwig Wittgenstein’s elegant principle of logic yields this simple truth: A is the same as A. This is sometimes expressed in the symbols of logic: A ≡ A where “≡” means congruence or two subjects ...

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