Overview
The basic premise of reversion to the mean is that nothing can go on endlessly - whether in a positive or negative direction. Eventually there are factors that act to stop or decelerate growth or decline to some normal or equilibrium level. To put it concisely: Extreme outcomes tend to be followed by more moderate ones.
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Mental Models on My Mind - Scuttlebutt Investor
A few months have passed since I received my copy of Poor Charlie's Almanack in the mail so this post has been marinating in my mind for some time. But I didn't really have the chance to crack open the book and dive into it until recently.
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