Today I discuss the human trait that, despite all its glory, has lead to disastrous consequences for many individuals and societies and specifically in investment world. In fact, if there is one trait which, even though I do frequently observe in successful people in various other human endeavors, is very rare to find in …
Few years back, while buying a book on Amazon, I ended up buying two more books along with the intended purchase. It was due to a feature of Amazon, which tells you what other buyers have bought along with the book you are trying to purchase. I never heard of these books earlier but …
“I hated discussing ideas with investors, because I then became a defender of the idea and that influences your thought process.” ~ Michael Burry (The Big Short) I’m sure this is one statement most of you will relate to. We often discuss stock ideas which, we understand, are contingent to future events but if we …
If you are sitting in a dark and unknown place for long time and someone switches on a light source, the initial feeling is of discomfort (especially for eyes). But once you get comfortable, you realize how different that place is from what you initially thought it to be. In my college days, I …
By the time you read this article, the world’s largest economy would have decided its President for the next 4 years. There is always an excitement in the markets worldwide when it comes to the US election and especially this time, given the state of the US and world economy. The parties have left …
Let me begin by thanking all the readers for their appreciation of the previous article on ‘availability bias’. And a special thanks to a particular reader, who indirectly gave me the idea about how I wanted to present this next nugget of wisdom by Munger. This goes on in form of a conversation over …
Lately, few of my friends advised me to succumb to my sadist tendencies. Hence, in that spirit, I have decided to be regular in my writing endeavor and inflict torture on readers on a regular basis. My struggle to find the best way to do this, led to the inception of 2 different series, which …
There are only two ways of clearing an exam. The first involves rigorous reading of the books and understanding the fundamental concepts which a subject is trying to teach, and develop a framework. Once you have a framework, you then assimilate additional information (either via theory or via practical in labs) on that …
Are you planning to buy a specific car? Go out and you will start noticing that so many people have the same car. You never noticed it was so damn popular! Astrology column told you that your lucky number is 999, and miraculously you started seeing that number frequently (house numbers, phone numbers, license …
This was my reaction to a statement made by an acquaintance of mine who was discussing how a particular stock has acted after his purchase in huge numbers. That particular stock is now close to 15% of his portfolio and the concern was valid but the reasoning was not. If you are a “Value …
