Extremistan – Mediocristan
The idea of Extremistan and Mediocristan is powerful and can help find investment ideas.
Category: Mental Models
Gordian Knot
This is a blog on the mental model of Gordian Knot.
Incentives, not intentions, drive the outcome
People understand incentives. They understand what is good for them and what isn’t. They aren’t moved by the noble intention; they are more concerned by what’s in it for them.
When the patriot met the economist
An imaginary conversation between the patriot in me and the economist in me.
Just because you’re good at anything, does that mean you should do everything?
Economics is a study of opportunity costs. This blog uses opportunity costs as a lens to analyze HDFC Bank and Manappuram.
Hello, Benedict!
The mind is lazy and jumps to conclusions.
Sultans of scale
Economies of scale is a powerful idea from microeconomics. Some of the largest companies, worldwide have put this to good use.
Network effects – part 1
(Writing is hard. Its been over 2 months since I wrote a new blog, because I suffered from a bit of a block. So this blog has been extra hard for me to write. And therefore it may seem extra hard for you to read and for that I apologize.) I am not a fan […]
Other People’s Money
This article first appeared on capitalmind.in. You know what is better than Debt or Equity? It’s Other People’s Money (OPM). Debt is expensive because you need to pay an interest on it. Equity is technically more expensive than Debt because you need to generate better returns for the extra risk that the shareholder is taking. […]
Chinese Bamboo
For the first three years, Chinese Bamboo doesn’t grow much. And then suddenly it grows nearly two feet a day. Chinese Bamboo is also a metaphor for no growth for long periods of time followed by a burst of extreme growth.
Interest upon Interest 