Difference between Unknown and Uncertain

 
 

This is going to be a short post. Have you ever wondered, what is the difference between Unknown and Uncertain and its implications on stock picking.

What is Unknown. Obviously, it is something which is not known. However, it also means that it is knowable. There is a definite answer, just that you don’t know it as yet but someone else might. If one does not know what time is it right now, then the time is unknown to him. However there is a definite answer to the question. He can just look at the watch or ask somebody and it would cease to be unknown.

And what is uncertain. Something is uncertain when there is no definite answer in the first place. So there is no question of knowing it upfront. Uncertain is not just Unknown but also Unknowable to varying degree depending on the complexity of the situation. In a way, Uncertain is Unknown to the power of Unknown.

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