Mental Models

What’s your hotdog

(Excerpt from Rework by Jason Fried) The way to find the epicenter is to ask yourself this question: “If I took this away, would what I’m selling still exist?” A hot dog stand isn’t a hot dog stand without the...

Circle of Competence, Strategy, Via Negativa Read More

Mean reversion is the most ironclad rule in financial markets

(Excerpt from What Works In Wall Street by James P. O’Shaungnessy) The most ironclad rule I have been able to find studying masses of data on the stock market, both in the United States and developed foreign markets,...

Investing, Mean Reversion Read More

Be a star or a janitor, avoid the middle

(Excerpt from Be a star or a janitor by Yoni Rechtman) You should always strive to do the work either 1) no one else can do or 2) no one else wants to do. Be a star or a janitor.  As a janitor, you should...

Inversion, Success, Yin Yang Read More

Adapt and stay alive long enough to get lucky

(Excerpt from A Short History of Money Market Funds by Ben Carlson) Vanguard’s first index fund hit the market in the summer of 1976. It was a complete bust, raising just over $11 million in capital from investors....

Adaptability, Founder, Luck Read More

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...

Adaptability, Availability Bias, Investing, Learning, Stereotype, Strategy Read More

Good writing is about removing clutter

(Excerpt from Writing Well by William Zinsser) Writing improves in direct ratio to the number of things we can keep out of it that shouldn’t be there. “Up” in “free up” shouldn’t be there. Examine every word...

Via Negativa Read More

Crony beliefs vs merit beliefs

(Excerpt from Crony Beliefs by Kevin Simler) I contend that the best way to understand all the crazy beliefs out there — aliens, conspiracies, and all the rest — is to analyze them as crony beliefs. Beliefs that...

Map Is Not Territory, Structure drives behaviour Read More

Classic books have been filtered by millions

(Excerpt from The Almanack of Ravikant) Any book that survived for two thousand years has been filtered through many people. The general principles are more likely to be correct. I wanted to get back into reading these...

Lindy Effect Read More

Reputation has compounding effect

(Excerpt from The Almanack of Ravikant) If you have a sterling reputation and you keep building it for decades upon decades, people will notice. Your reputation will literally end up being thousands or tens of...

Morals, Nonlinearity 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....

Investing, Nonlinearity Read More