J.P. Morgan once had a friend who was so worried about his…
“J.P. Morgan once had a friend who was so worried about his stock holdings that he could not sleep at night. The friend asked, 'What should I do about my stocks?' Morgan replied, 'Sell down to your sleeping point' Every investor must decide the trade-off he or she is willing to make between eating well and sleeping well. High investment rewards can only be achieved at the cost of substantial risk-taking. So what is your sleeping point? Finding the answer to this question is one of the most important investment steps you must take.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Investors must balance risk and reward, choosing a “sleeping point” where risk is tolerable enough to rest easy.
In simple terms: Find a risk level that lets you sleep peacefully.
Key Takeaway
Set a personal risk tolerance and stick to it.
Themes
finance
risk management
investment
Mood
analytical
pragmatic
Type
financial
strategic
When to use this quote
- Portfolio planning
- retirement saving
- stress reduction
Key Concepts
Utility theory
risk‑reward trade‑off
Questions to Reflect On
- What is your current sleeping point?
- How will you adjust it as life changes?
A Different Perspective
Risk tolerance changes over time; reassess regularly.