Stock Stories

Mental Model: Law of Large Numbers - Small Numbers Grow Faster Than Slower Numbers

Informações:

Sinopsis

In many things in life, reversion to the mean is inevitable.  Sometimes it takes a lot of data for this to become clear.  But in investing and in life, it is important to be careful with our assumptions and make sure that we don't confuse correlation with causation.  Understanding regression to the mean will help us do this effectively.