a thought for the day

Something to ponder from today's Melbourne Age

"Wimp free zone

If you view them (shares) as something that should produce stable, steady returns without much volatility - even occasional bouts of extreme volatility - then avoiding them might be wise. Warren Buffett once said that unless you can watch your stocks fall 50 per cent without becoming panic-stricken, you shouldn't be investing.

If, however, you accept that putting up with volatility is what allows shares to be the greatest wealth generator out of any asset class over long periods of time, then recent experiences shouldn't change anything.

Investing still makes sense. It just isn't for wimps."