Mental Models

Keep losses small to tolerate poor accuracy

(Excerpt from Think & Trade Like a Champion by Mark Minervini) Most people are surprised when I tell them I would rather be able to maintain profitability at a 25 percent batting average than a 75 percent batting...

Inversion, Investing Read More

Win by not losing

(Excerpt from How to Live by Derek Sivers) For something to succeed, everything needs to go right. For something to fail, only one thing needs to go wrong. Don’t try to be more right. Just be less wrong. Avoiding...

Inversion, Life, Success Read More

Overcome the pain to get what you want

(Excerpt from How to Live by Derek Sivers) Everything good comes from some kind of pain. Muscle fatigue makes you healthy and strong. The pain of practice leads to mastery. Difficult conversations save your...

Inversion, Life, Success Read More

Career map vs unmapped career

(Excerpt from Monday Musings 6 Dec 2021 by David Perell) Every industry has a map. Not a literal map, but a cognitive one filled with different skills needed to make money and produce products. Because of this, building...

Strategy, Structure drives behaviour, Success Read More

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