Mental Models

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

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...

Investing, Nonlinearity Read More

Business and Life are full of temptations

(Excerpt from Invested by Charles Schwab) The world of business, like the rest of life, is full of wonderful temptations, and making a choice about where you are going to devote your energy is often as much about...

Business, Focus, Life, Via Negativa 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...

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...

Investing, Nonlinearity Read More