Money and Finance
- Links
Latticework of Mental Models: Social Proof (LINK) Kevin Plank Is Betting Almost $1 Billion That Under Armour Can Beat Nike [H/T @iancassel] (LINK) Former Apple CEO John Sculley shares the most important thing he learned from Steve Jobs [H/T @BaseHitInvestor]...
- Howard Marks Memo: It’s All A Big Mistake
Mistakes are a frequent topic of discussion in our world. It’s not unusual to see investors criticized for errors that resulted in poor performance. But rarely do we hear about mistakes as an indispensible component of the investment process. ...
- Ray Dalio On Diversification
From Chapter 1 of The Alpha Masters by Maneet Ahuja:Dalio estimates that if the firm can make money on 60 to 65 percent of its bets in any given year, the odds are very high that the fund will meet its return targets. In 2010, as the D-process continued...
- Evolution: A Game Of Chance
One of the toughest concepts to grasp about evolution is its lack of direction. Take the classic image of the evolution of man, from knuckle-walking ape to strong, smart hunter: We view this as the natural progression of life. Truth is, there was no guarantee...
- Heads Up Play With David Einhorn
If you’re going to commit financial fraud, you probably don’t want to find yourself sitting at a table across from David Einhorn, who will know what you’re up to and share it with the world. Similarly, if you’ve never played poker and have only...
Money and Finance
Ray Dalio quote
“The bets are zero sum. In order for you to beat me in the game, it’s like poker, it’s a zero sum game. We have 1,500 people that work at Bridgewater, we spend hundreds of millions of dollars on research, and so on. We’ve been doing this for 37 years and we don’t know that we’re going to win. We have to have diversified bets. So it’s very important for most people to know when not to make a bet. Because if you’re going to come to the poker table, you’re going to have to beat me, and you’re going to have to beat those who take money. So the nature of investing is that a very small percentage of the people take money essentially in that poker game away from other people who don’t know when prices go up whether that means it’s a good investment or if it’s a more expensive investment.”
- Links
Latticework of Mental Models: Social Proof (LINK) Kevin Plank Is Betting Almost $1 Billion That Under Armour Can Beat Nike [H/T @iancassel] (LINK) Former Apple CEO John Sculley shares the most important thing he learned from Steve Jobs [H/T @BaseHitInvestor]...
- Howard Marks Memo: It’s All A Big Mistake
Mistakes are a frequent topic of discussion in our world. It’s not unusual to see investors criticized for errors that resulted in poor performance. But rarely do we hear about mistakes as an indispensible component of the investment process. ...
- Ray Dalio On Diversification
From Chapter 1 of The Alpha Masters by Maneet Ahuja:Dalio estimates that if the firm can make money on 60 to 65 percent of its bets in any given year, the odds are very high that the fund will meet its return targets. In 2010, as the D-process continued...
- Evolution: A Game Of Chance
One of the toughest concepts to grasp about evolution is its lack of direction. Take the classic image of the evolution of man, from knuckle-walking ape to strong, smart hunter: We view this as the natural progression of life. Truth is, there was no guarantee...
- Heads Up Play With David Einhorn
If you’re going to commit financial fraud, you probably don’t want to find yourself sitting at a table across from David Einhorn, who will know what you’re up to and share it with the world. Similarly, if you’ve never played poker and have only...