Randomness
This worldview is heavily influenced by Nassim Taleb. A lot of our successes are due to luck but we keep attributing them to our skills and abilities. We are all similar to optimistic gamblers making bets in our lives and believing we will win.
(Excerpt from The Psychology of Money by Morgan Housel) The trick when dealing with failure is arranging your financial life in a way that a bad investment here and a missed financial goal there won’t wipe...
September 26, 2020|
Investing, Luck, Randomness
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(Excerpt from The Psychology of Money by Morgan Housel) …focus less on specific individuals and case studies and more on broad patterns. Studying a specific person can be dangerous because we tend to...
September 26, 2020|
Luck, Randomness, Success, Survivorship Bias
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(Excerpt from The Psychology of Money by Morgan Housel) Benjamin Graham is known as one of the greatest investors of all time, the father of value investing and the early mentor of Warren Buffett. But the majority of...
September 26, 2020|
Investing, Luck, Randomness
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(Excerpt from Thinking In Bets by Annie Duke) In most of our decisions, we are not betting against another person. Rather, we are betting against all the future versions of ourselves that we are not choosing. …...
August 16, 2020|
Life, Luck, Optionality, Path Dependence, Randomness, Success
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(Excerpt from The Intelligent Investor by Benjamin Graham) The art of investment has one characteristic that is not generally appreciated. A creditable, if unspectacular, result can be achieved by the lay investor with...
September 23, 2019|
Fallibility, Investing, Overconfidence Bias, Randomness
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(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
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(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
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(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
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(Extracted from Fooled by Randomness by Nassim Taleb) We create a cohort that is composed exclusively of incompetent managers. We will define an incompetent manager as someone who has a negative expected return,...
September 15, 2019|
Investing, Randomness
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(Excerpt from Fooled by Randomness by Nassim Taleb) The initial sample size matters greatly. If there are five monkeys in the game, I would be rather impressed with the Iliad writer, to the point of suspecting him to...
September 14, 2019|
Investing, Randomness, Survivorship Bias
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