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…
Leverage: Gaining Disproportionate Strength
Leverage is a powerful concept that can be applied in various aspects of life, from business and finance to personal relationships and problem-solving. It involves using a small amount of input to achieve a significant output. Understanding the Concept of Leverage At its core, leverage is about finding ways to…
The Difference Between Speed and Velocity: Getting Stuff Done
Speed and velocity are two terms often used interchangeably, but they have distinct meanings, especially when applied to productivity and goal achievement. Speed: The Quantity of Effort Velocity: The Quality of Effort Why Velocity Matters More Than Speed: How to Increase Velocity: By understanding the difference between speed and velocity,…
Reciprocity: The Golden Rule of Social Exchange
Reciprocity is a fundamental principle of human interaction, rooted in the idea of mutual exchange. It’s the notion that if someone does something for you, you should do something in return. This principle is deeply ingrained in our social fabric, shaping our relationships, our communities, and our societies. The Psychology…
Galilean Relativity and the Invasion of Scotland: A Curious Connection
At first glance, the concept of Galilean Relativity, a fundamental principle in physics, and the historical event of the invasion of Scotland might seem entirely unrelated. However, a deeper dive reveals an intriguing connection: the role of perspective and the importance of understanding different frames of reference. Galilean Relativity: A…
Hanlon’s Razor: A Guide to Better Understanding and Relationships
Understanding Hanlon’s Razor Hanlon’s Razor is a principle of parsimony that suggests, “Never attribute to malice that which can be adequately explained by stupidity.” In simpler terms, it means that we should avoid assuming that others are intentionally trying to harm us, especially when a more benign explanation is possible….
Outline: How to Use Occam’s Razor Without Getting Cut
Introduction Chapter 1: Understanding Occam’s Razor Chapter 2: The Philosophy Behind Occam’s Razor Chapter 3: Occam’s Razor in Science Chapter 4: Practical Applications of Occam’s Razor Chapter 5: Avoiding Misapplication Chapter 6: Occam’s Razor in Critical Thinking Chapter 7: Occam’s Razor and Ethics Chapter 8: Future of Occam’s Razor Conclusion…
Inversion: A Powerful Tool for Problem-Solving and Decision-Making
Understanding Inversion Inversion is a cognitive technique that involves looking at a problem from the opposite perspective. Instead of focusing on how to achieve a positive outcome, we consider how to avoid a negative one. By inverting the problem, we can often identify critical factors that may be overlooked in…
Probabilistic Thinking: A Framework for Navigating Uncertainty
Image Credit – Fs blog Understanding Probability Probability, at its core, is the measure of the likelihood of an event occurring. It provides a quantitative framework to assess uncertainty and make informed decisions. While it may seem complex, probabilistic thinking is a powerful tool that can be applied to various…
Second-Order Thinking: The Art of Thinking About Thinking
Understanding First-Order Thinking First-order thinking is a linear, straightforward approach to problem-solving. It involves considering immediate consequences and making decisions based on surface-level information. While it can be effective in many situations, it often falls short when dealing with complex problems or long-term implications. The Power of Second-Order Thinking Second-order…