| Hepburn Capital Management

Perceptions of Risk

Posted on July 17, 2007

Researchers have discovered some interesting things about investors’ perceptions of risk: 1. Fear of loss is exponential. Anxiety increases with the magnitude of the loss. 2. Happiness over a gain decreases as the size of the gain increases. Gaining your first million means much more than gaining a second million. 3. Risk is not symmetrical. Most of us hate losses much more than we love gains.

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Quantum Mechanics and Investing

Posted on December 13, 2006

Quantum Mechanics and Investing Physics was not an easy course for me, and although I got an A (one of very few) I must admit I don’t remember studying quantum mechanics in school. Perhaps it had not yet been discovered – way back then. Quantum mechanics has something to do with really, really small particles – smaller than atoms. Apparently there are some things that are

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How Taxes Work

Posted on November 22, 2006

With the recent change of control in Congress, the campaign rhetoric of un-doing the tax cuts enacted the past few days is bother me. People who want this don’t realize that those same tax cuts raised us out of the 2001 recession and have created record numbers of jobs. They also may not understand how the tax system really works, so I thought I’d dust off

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Socio-Economics – the Markets and You

Posted on November 16, 2005

Socio-Economics – the Markets and You Robert N Elliott, an accountant in the 1920’s and 30’s, discovered repeating patterns in the prices of stocks and entire markets. These patterns are repeated over and over in smaller and larger cycles called fractals. And they are also repeated in nature as well as the financial markets. The structure of an atom looks very much like our solar

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