Toll Bridges
This blog is about how Toll Bridges print money for their owners.
Category: Mental Models
Force Multipliers
Levers are an example of a force multipliers.
Game theory
Game theory allows us to understand how people act in situations where they are interconnected.
Russian Roulette
Russian Roulette is a metaphor for gambling foolishly. The Credit Rating Agencies were playing Russian Roulette by not awarding to IL&FS.
Privatized benefits, socialized costs.
A made in India credit crisis is taking place.
Short feedback loops
Short feedback loops are powerful. They tell us what we did right and reward us for it and vice-versa, they tell us what we did wrong and punish us for it. Therefore by rewarding or punishing our behavior, short feedback loops alter our behavior.
Warren Buffett and the Rich Guy
An imaginary conversation between a Rich Guy and Warren Buffett.
Photo Credit: Photo by Travis Essinger on Unsplash
Backing Dravid
Looking for companies that can bounce back like Rahul Dravid did many times.
Monkey business
Assets produce cash. Liabilities consume cash. This simple way can be used to avoid bad investment decisions.
Show me the incentives and I will show you the outcome
We human beings we are self centered. Our own interests come first; this is just how we are. We respond to incentives especially if they appeal to our self interest. And if the incentives don’t appeal, there would be unintended consequences. That is why Charlie Munger said: Show me the incentives and I will show […]
Interest upon Interest 