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.
This blog is about money. And how over centuries we seem to be making similar mistakes with it.
People don’t think of survival as much as they should. This blog provides examples to prove that.
Survival is far more important than performance. To survive, we must negate all risks that threaten survival. One way to survive in the stock market is to have adequate diversification.
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.
Charlie Munger’s favorite idea was inversion. In fact, he even gave a speech titled: Prescriptions for a miserable life. In the same vein of inversion, I have tried to prescribe how one can remain unlucky.
How we live our days is how we live our lives. And therefore we must learn to spend time wisely.
Scalar just has magnitude whereas Vector has magnitude and direction. This is a concept taught in Physics. But it can be applied to business as is shown through many case studies.
This is a blog about an NBFC that almost went bust because it got rich while doing stupid things. But it managed to survive and change course.
However the lesson is that arrange your affairs so that you can survive large events like say Covid and even thrive when other less prudent people struggle.
This is a simple blog on Simple Interest and Compound Interest. These concepts are everywhere in nature, life, business and investing. We just need to train our minds to see them.
Interest upon Interest 