The mind likes to weave simple narratives around complex events. It makes it easier to store, understand and retell them. In investing it is better to have fewer narratives and be willing to go anywhere where there are opportunities.
Humans spent a majority of the time as hunter – gatherers. Therefore we have a bias for immediacy. This is both good news and bad news. Good news when we can use dashboards and other real time feedback for improvement. Bad news because Compound Interest is an invention of civilization which we are not programmed for.
Once you understand why people do what they do, it is easier to sell ideas to them. This blog combines a real life problem with Rory Sutherland’s wisdom in a Dhurandhar like setting.
Change is hard yet underestimated and we must not declare victory too soon because things tend to revert to mean. This is a sequel to the previous blog on the importance of being skeptical.
In this blog, I present the recent team selection through 3 different ideas.
This blog is about redistribution of assets, capacities and other resources across locations and time horizons. Redistribution allows you to have staying power during bad times and inability to redistribute causes fragility.
People don’t think of survival as much as they should. This blog provides examples to prove that.
Classical Economics assumes humans make decisions rationally. But in reality we are all messed up. Behavioral Economics explains our biases and why/how we make irrational decisions all the time.
Who says it, how it is said, when it is said matters more than what is said.
Periodically we need to purge our minds of old cherished but outdated or incorrect ideas. That will make our minds fresh and nimble and we begin to take notions less seriously.
Interest upon Interest 