The second caveat is that the range of valuations…

The second caveat is that the range of valuations is much broader than the range of outcomes. The most expensive quartile of stocks trades at nearly 4x the book value multiple of the cheapest quartile of stocks, but the cheapest quartile of stocks has historically outperformed the most expensive quartile by about 40%, not by 400% as would be implied by the 4x difference in valuation multiples.

— from True North (Ethics, Integrity, Truth, Values)

Also belongs to

• Expanding Your Range (Growth/Change/Education/Learning/Habit)
• Decisions & Choices (Decision/Choice/Focus/Forethought/Consequences)

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