Nonlinearity Tag Archive

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...

December 29, 2020| 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....

December 29, 2020| 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...

December 19, 2020| Investing, Nonlinearity 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

Globalisation introduces volatility spikes

(Excerpt from “The Interesting Times” email 21 Mar 2020 by Taylor Pearson) As a thought experiment, imagine 100 ladders lined up against a long wall. Each has a 10% probability of falling over. If the...

March 22, 2020| Entropy, Investing, Nonlinearity, World Read More

Nuclear, flying and guns are safer than you think

(Excerpt from Motherf*ckin’ Monday 4 Nov 2019 edition by Mark Manson) Quite simply, nuclear power would save lives. For every nuclear power accident, hundreds of thousands of people die due to fossil fuel-related...

November 11, 2019| Availability Bias, Inversion, Nonlinearity Read More

Find a career with compounding effect

(Extracted from How To Be Successful by Sam Altman) You also want to be an exponential curve yourself—you should aim for your life to follow an ever-increasing up-and-to-the-right trajectory. It’s important to move...

October 25, 2019| Nonlinearity Read More

Be selective about what you work on. Think hard before you work hard.

(Excerpt from Zero to One by Peter Thiel) The power law is not just important to investors; rather, it’s important to everybody because everybody is an investor. An entrepreneur makes a major investment just by...

September 21, 2019| Focus, Life, Nonlinearity, Tech Read More

Rule for Venture Capital: Invest in companies with the potential to return the value of the entire fund

(Excerpt from Zero to One by Peter Thiel) Our results at Founders Fund illustrate this skewed pattern: Facebook, the best investment in our 2005 fund, returned more than all the others combined. Palantir, the...

September 21, 2019| Nonlinearity, Tech Read More

Losing $1 for most expirations and making $10 more than 9.1% of the time

(Extracted from Fooled by Randomness by Nassim Taleb) There is another type of satisfaction provided by the option seller. It is the steady return and the steady feeling of reward—what psychologists call flow. It...

September 20, 2019| Inversion, Investing, Nonlinearity Read More

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