In a world that often glorifies brilliance, it’s easy to forget that avoiding stupidity is often a more reliable path to success. While striving for excellence is admirable, it’s equally important to recognize and mitigate the potential for errors and mistakes. The Importance of Avoiding Stupidity Strategies for Avoiding Stupidity…
The Noise Bottleneck: When More Information is Harmful
In our information-saturated age, we’re constantly bombarded with data from every corner of the globe. While access to information has undoubtedly expanded our knowledge and understanding, it has also created a new challenge: the noise bottleneck. This phenomenon, popularized by Nassim Nicholas Taleb, highlights the paradox that more information can…
The Buffett Formula: Going to Bed Smarter Than You Woke Up
Warren Buffett, the legendary investor, is renowned for his unwavering commitment to lifelong learning. His philosophy, often encapsulated in the phrase “Go to bed smarter than when you woke up,” is a testament to his belief in the power of continuous education and intellectual curiosity. Key Principles of the…
How Warren Buffett Stays Ahead of the Curve
Warren Buffett’s ability to navigate the complex world of finance and consistently make astute investment decisions is a testament to his keen intellect and disciplined approach to information consumption. Here’s a breakdown of how he stays informed: 1. A Focused Reading Routine: 2. A Filter for Information: 3. A…
Why Most Investors are Mostly Wrong Most of The Time
Last week I offered the readers of Intelligent Investor a reason for the dismal performance of Indian mutual funds. My reason was that portfolio managers don’t have the right incentives to make intelligent but unconventional investment decisions with the result that the portfolios of most funds are very much alike…
The Power of Incentives: The Hidden Forces That Shape Behavior
Understanding the Psychology of Incentives Incentives, both positive and negative, are powerful tools that can significantly influence human behavior. By understanding the psychology behind incentives, we can harness their power to achieve desired outcomes. The Basics of Incentives The Role of Intrinsic and Extrinsic Motivation The Impact of Incentives on…
The Red Queen Effect: Running to Stay Still
Understanding the Evolutionary Concept The Red Queen Effect, a term coined by evolutionary biologist Leigh Van Valen, is a metaphor derived from Lewis Carroll’s Alice’s Adventures in Wonderland. In the story, the Red Queen tells Alice, “It takes all the running you can do, to keep in the same place.”…
Mitesh Sir’s EXPIRY Option Selling 101:
• What to look for? • Strike Selection & Ratios • SL mgmt • Avoiding freezes • Monthy Expiry • Event days • How he would have traded last expiry? Edward de Bono says intelligence is like a Automobile “A powerful car may be driven badly. A less powerful car…
How to solve a 2×2 cube | Step by Step Beginners Instructions
A 2×2 is a six sided cubic puzzle similar to the 3×3 Rubik’s cube, but it only has two layers, with 4 corners on each layer. There are no center or edge pieces. You can use the same steps to solve a 2×2 as you use for the corners of…
How to adjust IronFly ?
If you use it right, Iron Fly is the most solid risk-defined strategy in trading. But most people don’t know how to adjust the strategy when it goes wrong. Here are 7 adjustments you can do to lower risk and increase profitability: 0/ Who is this for? This will greatly…
24 Lessons From Jeff Bezos’ Annual Letters To Shareholders
March 20, 2022March 20, 2022 by alokranjan Since 1997, Amazon’s stock price has risen from $5 per share to over $3,000 per share. To read Bezos’ shareholder letters is to get a crash course in running a high-growth internet business from someone who mastered it before any of the playbooks were written….
A Lesson on Elementary, Worldly Wisdom As It Relates To Investment Management & Business
I’m going to play a minor trick on you today because the subject of my talk is the art of stock picking as a subdivision of the art of worldly wisdom. That enables me to start talking about worldly wisdom—a much broader topic that interests me because I think all…
The Buffett Formula: Going to Bed Smarter Than When You Woke Up
A Deep Dive into the Investment Philosophy of Warren Buffett Warren Buffett, the Oracle of Omaha, is renowned for his extraordinary investment prowess and his simple yet profound approach to life and business. Central to his success is a philosophy encapsulated in a single phrase: “Go to bed smarter than…
How to Win Friends and Influence People: A Summary
Dale Carnegie’s timeless classic, “How to Win Friends and Influence People,” offers practical advice on interpersonal skills and effective communication. Here’s a summary of its key principles: Part I: Fundamental Techniques in Handling People 1. Don’t Criticize, Condemn, or Complain: 2. Give Honest and Sincere Appreciation: 3. Arouse in the…
Michael Steinhardts Interview On How to achieve a 28 Return Annually for 28 Years Long Term Investment Success
Understanding Michael Steinhardt: A Legendary Investor Michael Steinhardt, a renowned hedge fund manager, achieved extraordinary investment returns over 28 years. His success was rooted in a combination of sharp intellect, rigorous analysis, and a willingness to take calculated risks. While a specific 10,000-word interview detailing his exact strategy may not…
The HDFC merger – Can the $60 billion elephant dance?
The Story “As the son grows older, he acquires the father’s business.” That’s how Deepak Parekh, the chairman of HDFC Ltd explained the merger between the 45-year old HDFC Ltd and its 28-year old banking offspring HDFC Bank. And you know what? It’s a nice way of summarizing this merger…
16 Lessons from Warren Buffett’s Annual Letters to Shareholders
Warren Buffett’s annual letters to Berkshire Hathaway shareholders are legendary for their insights into investing, business, and life. These letters, often filled with wit and wisdom, have shaped the investment strategies of countless individuals. Here are 16 key lessons distilled from these timeless writings: 1. Long-Term Perspective: 2. Value Investing:…
A few lines I came across recently that got me thinking:
“It is far easier to figure out if something is fragile than to predict the occurrence of an event that may harm it.” – Nassim Taleb “Survival is the ultimate performance measure.” – Vicki TenHaken “Everything feels unprecedented when you haven’t engaged with history.” – Kelly Hayes “My definition of…
Ray Dalio’s Principles: A Framework for Success
Ray Dalio, the billionaire founder of Bridgewater Associates, has shared a set of principles that have guided his success. These principles, outlined in his book “Principles: Life & Work,” provide a framework for understanding the world, making effective decisions, and achieving goals. Core Principles 1. Embrace Reality: 2. Identify the…
Activation Energy: The Hurdle to Overcoming Inertia
Understanding Activation Energy In chemistry, activation energy is the minimum amount of energy required to initiate a chemical reaction. In the realm of human behavior, we can think of activation energy as the initial energy required to overcome inertia and start a task. The Science Behind Procrastination Our brains are…