When asked what was the dumbest stock Warren Buffett ever bought, do you know what he said? Surprisingly, he said his own company, Berkshire Hathway!

Here's the whole article, by the way.

For those who want a quick synopsis, he was infuriated with the then-CEO, and bought a majority share of the company to get him fired. That's how he also became the head of Berkshire Hathway.

However, had he thought it through more clearly, and started out with the insurance company that he had wanted in the first place (Geico?), rather than a down-trodden textile company (just to get one man fired), then he say his financial empire would be worth $200 billion today!

In a nutshell, it's best to keep emotions out of investing and trading. Let the numbers do the talking. That being said though, I have to give old man Buffett respect for being able to point out his own mistakes. Even the best are only human.

On a separate but related note, here's a funny comic I came across. Buy! Buy! Sell! Sell!

This seems like an actually useful quiz!

Based on that, I found out that I have a fairly high risk capacity (33) but a moderate risk tolerance (24).

For someone like me, the risk tolerance sounds about right. I've noticed that I'm starting to be a bit more conservative as time goes by. Again, it's most likely because I'm anticipating to lose my current job soon, but I think it's also because I'm starting to get older.

Now, risk capacity is what I'm slightly concerned about. However, the suggested asset allocation is 80% equities, 20% fixed income, and this is what I would have if I had went all-in on my stock trades anyways. Otherwise, I would be in more % cash.

Here's a quick explanation of the difference between risk tolerance and risk capacity.

Anyways, how did you do on the quiz?

Bonus: Amusing currency picture.