Average Quote by 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.”
About This Quote
Source Book: The Book of Numbers by William Poundstone, 2014
Average performance can be acceptable in some contexts like investing, but not in high‑stakes environments such as racing.
In simple terms: Average can be okay for stocks, not for racing.
Key Takeaway
Assess risk and set realistic expectations.
Themes
risk
performance
investment
competition
Mood
cautious
analytical
Type
financial
advisory
When to use this quote
- stock investing
- racing strategy
- portfolio planning
Key Concepts
expected value
risk tolerance
taxes
commissions
Questions to Reflect On
- Is average truly sufficient for your goals?
- How do you balance risk and reward?
A Different Perspective
Average may mask underlying volatility and opportunity cost.
