Investment Sayings and Quotes — Explained

For my post, I have to qualify the investment “quotes” as sayings since quotes in investments are more likely to refer to prices.

Many people like to read quotes/sayings since these are inspiring, enlightening, motivating ideas which are condensed into something short, witty, enigmatic and catchy. Sometimes though, the quotes may be too enigmatic that interpretations may be necessary. Here is what this post (which will be a part of a series) is for.

 

Investment Quote:

“In investing, what is comfortable is rarely profitable.” – Robert Arnott

 

What the quote probably means:

In investing, there is such a thing as the risk-return tradeoff. The higher the risk, the higher the potential return. Taking risks takes someone away from his comfort zone. An investor taking low risks will less likely earn big.

 

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Who’s Fracking What?

Wonder why gas prices are low nowadays?

It seems Fracking has a lot to do with this phenomenon.

Fracking, or hydraulic fracturing, is the process of extracting natural gas from shale rock layers deep within the earth. Read more about Fracking at  http://www.what-is-fracking.com/.

 

This is how they Frack. Image from www.biggerpieforum.org

The Fracking revolution in the United States has been cited as the cause of lower crude oil prices in 2014. See the graphs from the Motley Fool website.

However, in 2015, these low prices may eventually put pressures on Fracking as firms struggle with lower profitability. It seems that Fracking is becoming a victim of its own success.