One night is ancient times, three horsemen were riding across a desert. As they crossed the dry bed of a river, out of the darkness a voice called, "Halt!"
They obeyed. The voice than told them to dismont, pick up a handful of pebbles, put the pebbles in their pockets and remont. The voice then said, "You have done as I commanded. Tomorrow at sun-up you will be both glad and sorry." Mystified, the horsemen rode on. When the sun rose, they reached into their pockets and found that a miracle had happened. The pebbles had been transformed into diamonds, rubies, and other precious stones. They remembered the warning. There both glad and sorry----glad they had taken some, and sorry they had not taken more.
And this is the story of I N S U R A N C E
Thanks for listening.
John
2 comments:
It is also a matter of fear and greed. You buy more out of fear for what might happen. And you are driven by greed to buy less and save the money.
Alden explained to me that fear and greed are what drives the stock market.
A misconception Tom, but a common belief. The amount of money you save is only saved if you don't have a fortuitous loss that could have been covered with fire or casualty insurance.
Not so with life insurance. Some one always pays either the preimum in advance or the family pays by doing with out after the death. This is because life insurance is a true actuarial science. Where as fire and casualty insurance is based on past experience projected in the furure and is more of an educated guess.
Alden may be correct on the stock market, but I don't believe it. I believe the stock market is based on knowledgeable calculated risk and is driven by the events of the day. As a securities dealer for a number of years I never encountered fear or greed in anybodys eyes. Even when I visited the Chicago Board of Trade and the New York Stock exchange I didn't see any fear or greed. Every transaction was based on a calculated risk.
We all have opinions that are sometimes based on the amount of knowledge we have on a given subject. I found this so true in my occupation when asking two drivers to describe how an auto accident happened. Sometimes you would not even guess it was the same accident. But both had knowledge of the event. Some people see it one way and others see it another way based some what from their perspective.
John
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