At a bare minimum, understanding entails being able to detect an internal contradiction: a paradox.
Chapter 1: "Paradox", p. 21
In real conversations, we are always trying to outguess each other.William Poundstone
Samuelson spotted a mistake in Bacheliers work. Bachelier's model had failed to consider that stock prices cannot fall below zero.William Poundstone
Samuelson, however, hedged his personal bets - by putting some of his own money in Berkshire Hathaway.William Poundstone
The best paradoxes raise questions about what kinds of contradictions can occur what species of impossibilities are possible.William Poundstone
"Average" isn't so hot at the race track given those steep track takes. "Average" is pretty decent for stocks, something like 6 percent above the inflation rate. For a buy-and -hold investor, commissions and taxes are small.William Poundstone