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Julius Wagner - JaureggNoble Price in Medicine - 1927 |
In early 19th century, Wagner started injecting patients with low end strains of typhoid, Malaria and Small pox to trigger high fever to kill syphilis. Some of his patients died through his treatment but the success ratio was higher. He found patients treated with "Malariotherapy" get cured from Syphilis and for this he was awarded the Noble Price in Medicine in the year 1927. So, we understand in some cases, triggering a high fever cures a fatal disease
We also know, fever have marginal benefits in fighting infections. Fevers turn on the body's immune system. They help the body to fight infections. Normal fever between 100 to 104 degree Fahrenheit are good for children. By knowing this factor, if we have a high fever will we keep ourself under the blanket and wait for it to recover itself or will we go to the doctor and have the necessary medicines to cure it soon as possible ? Definitely if we have the pain which is not barrable, we will go and consult a doctor
The Rational thinking is, we know this fever will get us build our immune system but the Reasonable factor is to get ourself cured from fever. Likewise, we should consider the reasonable factors instead of rational factors in decision making
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| Harry Markowitz - Noble Price in 1990 for Evaluating Stockmarket between Risk and Return |
Reasonable Investor - Makes decision by considering his co-workers, spouse, relatives and friends would never get hurt because of the decision he/she makes in investing
Harry Markowitz was an American economics and finance educator. He was also awarded the Noble price for evaluating the Risk and Return in stockmarket. He was an Reasonable investor. He doesn't want to lose the return which he would get in investing in the stockmarket when the market is going high, likewise he also doesn't want to get hurt when the market is going against his portfolio
How to keep this balanced ? He always done his investing 50/50. He invested 50% in equities and 50% in bonds. When the market is going high, he would get more benefits from equities and the normal predicted return from his bonds. When the market goes against his portfolio, still he is saved with his bonds as it would give the pre-defined benefits and he would wait for the equities to give better returns
He is never Rational or Irrational. He is Reasonable
Let us have this in our mind before we start any investing process.
"Man is not a Rational Animal, he is rationalizing animal" - Robert Heinlein
Have a Great Day
B G Nareshkumar
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