chowyonghan Author

Size of wins matters, not frequency of wins

(Extracted from Fooled by Randomness by Nassim Taleb) The best description of my lifelong business in the market is “skewed bets,” that is, I try to benefit from rare events, events that do not tend to repeat...

September 19, 2019| Investing, Nonlinearity Read More

Definition of blowup

(Extracted from Fooled by Randomness by Nassim Taleb) The blowup, I will repeat, is different from merely incurring a monetary loss; it is losing money when one does not believe that such fact is possible at all. There...

September 19, 2019| Investing Read More

Success is 99.9% luck

(Excerpt from Fooled by Randomness by Nassim Taleb) we often have the mistaken impression that a strategy is an excellent strategy, or an entrepreneur a person endowed with “vision,” or a trader a talented trader,...

September 19, 2019| Randomness, Survivorship Bias Read More

How do you get rich without getting lucky?

(Extracted from The Financial Turing Test by Nick Maggiulli) It is probably better to listen to a self-made rich person than a self-made poor person when it comes to financial matters.  However, this doesn’t...

September 18, 2019| Life, Randomness Read More

For value investing to work, it has to stop working sometimes

(Extracted from Why Value Investing Works on safalniveshak.com) The fact that the value approach doesn’t work over periods of time is precisely the reason why it continues to work over the long term....

September 18, 2019| Inversion, Investing Read More

Why it is so hard to choose

(Excerpt from Barking Up the Wrong Tree by Eric Barker) We love having choices. We hate making choices. Having choices means having possibilities. Making choices means losing possibilities. And having so many choices...

September 18, 2019| Focus, Via Negativa Read More

Habits have compounding effects

(Extracted from Atomic Habits by James Clear) Habits often appear to make no difference until you cross a critical threshold and unlock a new level of performance. In the early and middle stages of any quest, there is...

September 17, 2019| Life, Nonlinearity Read More

Destroy your best-loved ideas constantly

“Any year that you don’t destroy one of your best-loved ideas is probably a wasted year.” Charlie Munger...

September 16, 2019| Inversion Read More

Some advantages of randomness

(Extracted from Fooled by Randomness by Nassim Taleb) Another way to see the beastly aspect of schedules and rigid projections is to think in limit situations. Would you like to know with great precision the date...

September 15, 2019| Randomness Read More

Persevere for nonlinear effects

(Extracted from Fooled by Randomness by Nassim Taleb) Our brain is not cut out for nonlinearities. People think that if, say, two variables are causally linked, then a steady input in one variable should always...

September 15, 2019| Investing, Nonlinearity Read More

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