Investing

The career, business or investment with the best ROI is often dismissed and not well documented

(Excerpt from The Interesting Times 23 Apr 2021 by Taylor Pearson) If you stumble on what looks like a great opportunity that the market is ignoring, 99 times out of 100, the market as a whole knows something you...

April 24, 2021| Adaptability, Availability Bias, Investing, Learning, Stereotype, Strategy Read More

Good companies always look overvalued

(Morgan Housel at FinTwit Summit 2021. Paraphrased) One thing that has been persuasive to me over time, is that good companies always look overvalued. Always. If we are talking about individual stocks, not about market...

March 27, 2021| Investing Read More

Think more before you act

(Excerpt from The Almanack of Ravikant) We waste our time with short-term thinking and busywork. Warren Buffett spends a year deciding and a day acting. That act lasts decades....

December 29, 2020| Investing, Nonlinearity Read More

Value investing is about identifying mispricing

(Excerpt from Staring into the Valuation Abyss) I think there is a lot of confusion out there about what Value investing is. Lots of people seem to think it’s about buying really crappy companies for low multiples....

December 28, 2020| Investing Read More

Compounding is returns leveraged with time

(Excerpt from Last Man Standing by Morgan Housel) … compounding is just returns leveraged with time. Earning a 20% return in one year is neat. Doing it for three years is cool. Earning 20% per year for 30 years...

December 19, 2020| Investing, Nonlinearity Read More

Business and Investing are multi-disciplinary

(Excerpt from A Few Things I’m Pretty Sure About by Morgan Housel) An engineer can have a successful career knowing nothing other than engineering. Same for a chemist, meteorologist, or radiologist. Business and...

December 19, 2020| Business, Investing Read More

Business first, management second

(Excerpt from Charlie Munger’s ‘Bag of Tricks’) “We have a very peculiar way of looking at things. We want to buy something that’s intrinsically a very good business, meaning that an idiot could run it and...

October 28, 2020| Investing Read More

Ben Graham kept changing his investment formulas and ultimately investing became too competitive

(Excerpt from The Psychology of Money by Morgan Housel) Graham was constantly experimenting and retesting his assumptions and seeking out what works—not what worked yesterday but what works today. In each revised...

September 28, 2020| Adaptability, Investing Read More

Time is the important driver of investment returns

(Excerpt from The Psychology of Money by Morgan Housel) As I write this Warren Buffett’s net worth is $84.5 billion. Of that, $84.2 billion was accumulated after his 50th birthday. $81.5 billion came after he...

September 26, 2020| Investing, Nonlinearity Read More

Focus on staying in the game until the odds fall in your favour

(Excerpt from The Psychology of Money by Morgan Housel) The trick when dealing with failure is arranging your financial life in a way that a bad investment here and a missed financial goal there won’t wipe...

September 26, 2020| Investing, Luck, Randomness Read More

↑