The Investor’s Mindset

The first question you must ask is: What is my bet? What exactly am I wagering? It’s not a particular company—that’s secondary. It’s the specific outcome I’m convinced will happen. It’s fine if I miscalculate, as long as I’m consciously aware of what I’m calculating and what I’m actually betting on.

The second question is: What risks do I need to avoid, and what’s my hedge if things go better than expected?

The final question is: What is my unit of account? How do I settle? And what risks are inherent in that very unit of account and settlement process?