Hey Tribe, During your college days you might be lucky enough to come across an idea that is worth th
|
|
July 22 · Issue #8 · View online
Investors Therapy is a newsletter, from the Silicon Valley Investors Club (svinvestorsclub.com), that helps investors understand their psychology so they can make smarter investment decisions. If you're ready to take the next step in your investment journey, subscribe!
|
|
Hey Tribe, During your college days you might be lucky enough to come across an idea that is worth the price of admission. This happened to me during my international relations class taught by professor William Stover. In one of his classes, he asked us a simple question, “Why did the US invade Iraq?” Each student had valid reasons why the US invaded Iraq. Such as Oil, Military Industrial Complex, heighten political fear since 9/11, terrorism, support for Israel, the risk of Saddam getting a nuke, etc. Each student argued to death why their single reason was the primary driver for the invasion and they had plenty of evidence to back up their claims. Eventually, Stover drew a circle on the whiteboard and said, “After the fact it’s easy to see why we invaded because there are no more moving pieces, no more uncertainty, things are static, so you can drain the complexity out of the situation to create a simple narrative. But when we simplify the situation, we forget all of the factors at play that lead us to war.” He then filled the circle with a litany of reasons why we invaded, and soon it became evident that our own biases prevented us from seeing the other factors at play that lead to the Iraq war. We don’t intentionally do this because we want to make bad decisions. Our brains create narratives to make the world manageable. For example, if the next time you made a decision you had to take in all possible data points, analyze them, and try to come up with a objectively verifiable solid decision. Nothing would ever get done in your life. We have to limit the data we upload into our brains in order to function in this world. We need to create narratives so our world becomes more manageable and stable. It’s when these narratives turn out to be incorrect when our lives and the markets get thrown into chaos. But in order for us to make better investing decisions, we have to do the reverse. We have to challenge our assumptions by seeking data or people we disagree with in order to test the validity of our narratives. It’s a hard exercise because most people don’t do this, but if you have the ability to stop, think, and challenge your narratives, your investing decisions will be based on a firmer foundation. However, the problem with that is, when do you stop taking in data? How do you know if the data is credible? And how do you decide to weigh certain opinions over others? Who knows. I guess that’s where risk comes into play when we make investments. Cheers, Jordan PS - A few weeks ago I had a conversation with Annie Duke about decision making and other cognitive traps that can hurt our lives, check it out!
|
|
Sound financial planning advice from the oracle of omaha
|
|
Interview with Annie Duke of World Series of Poker Tournament of Champions winner and author of Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts - JBT's Blog
“Don’t get so down on yourself for your bad outcomes and don’t pat yourself on the back so hard for the good ones.” – Annie duke
|
|
51 Peter Lynch Quotes to Empower Your Investing | InvestingAnswers
As the manager of Fidelity Investment’s Magellan Fund from 1977 to 1990, which averaged a 29.2% return during that time and grew from $18 million in assets to $14 billion under his management, Peter Lynch is considered one of the most successful stock market investors of all time.
|
|
Valuation Inflation – AVC
Since raising our third early-stage fund in 2012, we have led or co-led 16 seed rounds, 31 Srs A rounds, and 8 Srs B rounds, for a total of 55 new USV portfolio companies over the last six years.
|
|
China think tank warns of potential ‘financial panic’ in leaked note | South China Morning Post
A leaked report from a Chinese government-backed think tank has warned of a potential “financial panic” in the world’s second-largest economy, a sign that some members of the nation’s policy elite are growing concerned as market turbulence and…
|
|
More than half of US housing markets were overvalued in April
As the sharp gains in home prices continue, more markets are seeing values higher than their local economies can support.
|
How Australia’s Banks Became the World’s Biggest Property Addicts
|
California's median home price tops $600,000 for the first time - INSIDER
The median price for a home in California has topped $600,000, a new record high and more than double the national median home price. The Bay Area is the most expensive region, with five counties recording a median price above $1 million.
|
|
For elites, politics is driven by ideology. For voters, it’s not. - Vox
Committed liberals and conservatives don’t realize how weird they are.
|
Listen to the Power of Quiet People – Personal Growth – Medium
Are you an introvert or an extrovert? Your answer says more about how our society operates than about yourself. Our culture worships loud people, but organizations and teams must embrace quiet people.
|
Biosphere 2: Photos show the 1990s Mars colony test as it looks today - INSIDER
Biosphere 2 was an ambitious experiment in the Arizona desert to simulate a self-sustaining colony on Mars. In 1991, eight people shut themselves inside the airtight 3.14-acre habitat for two years. New photos show what the facility looks like today.
|
How to Succeed in Business? Do Less - WSJ
“The common practice we found among the highest-ranked performers in our study wasn’t at all what we expected. It wasn’t a better ability to organize or delegate. Instead, top performers mastered selectivity. Whenever they could, they carefully selected which priorities, tasks, meetings, customers, ideas or steps to undertake and which to let go. They then applied intense, targeted effort on those few priorities in order to excel. We found that just a few key work practices related to such selectivity accounted for two-thirds of the variation in performance among our subjects. Talent, effort and luck undoubtedly mattered as well, but not nearly as much…”
|
|
Interview with Annie Duke of World Series of Poker Tournament of Champions winner and author of Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts - JBT's Blog
“Don’t get so down on yourself for your bad outcomes and don’t pat yourself on the back so hard for the good ones.” – Annie duke
|
Why Capitalism Needs Socialism to Survive | Big Think
Should scientists and the more technological minded be given more power in a capitalist world?
|
World After Capital, with Albert Wenger – [Invest Like the Best, EP.80]
My guest this week is Albert Wenger, a managing partner at Union Square Ventures and the author of the book World After Capital.
|
|
If you like what you read and you want it delivered to your inbox subscribe to my newsletter or share it with your friends. If you have any articles I should check out, please email me at jt@jbtblog.com.
|
The fall of mental hospitals and the rise of incarcerations.
|
Did you enjoy this issue?
|
|
|
|
If you don't want these updates anymore, please unsubscribe here.
If you were forwarded this newsletter and you like it, you can subscribe here.
|
|
|