- Investments should look at Cause and Effect relationships and Second Order Effects
- What external changes will result in the current investment to do well? To do poorly?
- What are some second order effects to be concerned about?
- How does governmental / geopolitics affect this investment?
- How can you use leverage on this investment?
Wealth / Money
The life of money-making is one undertaken under compulsion, and wealth is evidently not the good we are seeking; for it is merely useful and for the sake of something else. - Nicomachean Ethics
He who craves riches feels fear on their account. No man, however, enjoys a blessing that brings anxiety; he is always trying to add a little more.
Every man, when he first sees light, is commanded to be content with milk and rags. Such is our beginning, and yet kingdoms are all too small for us!
- Letters from a Stoic, Seneca
What matters isn’t what a person has or doesn’t have; it is what he or she is afraid of losing. - Skin in the Game
Now I think no riches can compare with being alive, not even those they say this well-built Ilion stored up in peace before the Akhaians came. Neither could all the Archer’s shrine contains at rocky Pytho, in the crypt of stone. A man may come by cattle and sheep in raids; tripods he buys, and tawny-headed horses; but his life’s breath cannot be hunted back or be recaptured once it pass his lips. - Illiad
The fact that people in countries with cold weather tend to be harder working, richer, less relaxed, less amicable, less tolerant of idleness, more (over) organized and more harried than those in hotter climates should make us wonder whether wealth is mere indemnification, and motivation is just overcompensation for not having a real life. - The Bed of Procrustes: Philosophical and Practical Aphorisms
- 80% in boring index funds
- 20% play the game but treat this as money as lost.
- Use money for hobbies and things that give you joy. I love good food so I will spend a lot of money on food even if I don’t buy the latest car or other gadget.
- Buy experiences, they last longer than stuff, unless that stuff helps you have better experiences.
- automate where money goes so you don’t have to think about how you are moving it around.
How do you create leverage such that something invested today grows at a compounded rate over time. This can be either money, knowledge, friendship, betterment of society.
- Investing in Self
- Investing in Others
- We go through life in what I call War Time and Peace Time.
- War Time is when you are investing in something big such as learning, business, etc.
- Peace Time is when you are stable and collecting a steady stream of money i.e a paycheck
- Both have different modes of operation.
- When things are going up the economy is inefficient because growth is the primary factor.
- Build services and products that are made to give leisure and time.
- When things are going poorly efficiency is the primary factor to optimize for profit.
- Build services and products that make things more efficient as this is the time when layoffs, etc. happen.
Financial Decision Making
- Find stock fitting criteria
- Find information
- Test cause and effect
- Sentiment analysis of company
- Decision yes or no
- Good bad
- Modify existing job for success or failure
- Track Cause and Effect of Companies
- Figure out ripple effects. If a company is doing badly what other companies are connected to that company?
- What does the future hold for certain companies?
- What trends are people doing now
- Also track when Stocks have quarterly earnings and how things can be affected.