[The Weekend Bulletin] #77: Time is the New Currency, Cosmic Duality, Long Term, OODA Loop,
+ Downside of Being Effective, Work from Near Home.
A digest of some interesting reading material from around the world-wide-web. Your weekly dose of multi-disciplinary reading.
Section 1: Investing Wisdom
Sometimes you come across articles that make you realise how much the world around you is changing, and how you've failed to notice so far (the boiling frog syndrome: gradual changes are difficult to notice). The following is one such article. Even if you have no interest in tech businesses, I suggest that you still read it.
Tech is turning the traditional business model and strategy on its head. While traditionally businesses focused on building a moat and high margins/returns on capital, the new age businesses think differently. Rather than build a wall and a ditch (moat) around their castle, these businesses are opening the doors of their castles for everyone (open-source). Further, rather than trying to earn profits, these businesses are trying to earn time. This is a very different perspective on the modern businesses that this slightly dated article provides.
We all know diversification and understand its benefits. However, one factor of diversification that is under-appreciated is that of correlation (or the lack of it). This very short note provides a very interesting anecdote to explain this concept.
One of the qualities of a good writer that I admire a lot is their ability to take things that you might be aware of, and put them in to words in ways that you could never do. In the world of finance, Morgan Housel is one such writers. He is really gifted when it comes to putting thoughts in words. In his latest, he talks about some of challenges in trying to be a long term investor. My favourite line from this post:
Patience is often stubbornness in disguise.
Investing and life lessons from a dozen of the top investors of our time - that is the central idea of a recently released book: Richer, Wiser, Happier by William Green. Here are some notes from the book that'll give you a good perspective on the subject (and hopefully encourage you to read the book).
Section 2: Mental Models & Behavioral Biases
One of the things that we do repeatedly every day is make decisions. Some decisions are trivial, but many have a meaningful impact on the long term outcomes of our lives. It is therefore important that we develop models to make better decisions. One such model, developed initially for the military, is the OODA loop. This article provides a very detailed perspective on this model.
In issue 74, we discussed the contrast between efficiency and effectiveness - being efficient does not necessarily make us effective; when it comes to choosing between efficiency and effectiveness, we should always vote for effectiveness. However, effectiveness has its own downside as well, as this article explains. Sometimes, the choice of being not-so-effective can also turn out to be a good one. A very interesting perspective.
Section 3: Personal Development
An old solution to a new issue. As the pandemic-induced work from home enters its second year, we are increasingly realising that it is not the most effective solution. Indeed, while we all agree that going back to office may not be necessary, many (if not all) would also agree that work from home is not sustainable. Is there a mid-way? By looking at the habits and routines of writers - the original work from home knowledge workers - we could possibly find a middle path, claims Cal Newport (author of Deep Work) in this article.
Section 4: Blast From The Past
Apologies for this shameless plug. But this holds relevance from the perspective of a discussion that I have been having with some newly acquainted friends over the past few weeks:
We live in a world of information abundance. We are constantly bombarded with an overload of information, leaving us with hardly any time to process it. Consequently, our attention spans are shortening and our retention rates are falling. Our thoughts now live and die in-between the ping and ding of notifications. Is there a way out? Here is a system that I have found useful in dealing with the information tsunami.
(This article was featured in the fifth issue of TWB. You can read the whole issue here).
Quotable Quotes
Compounding
The Right Thing
"The list of mistakes you can never recover from is very short.
But you likely realize your life will not be destroyed if your book doesn’t sell or if a potential date turns you down or if your startup goes bust. It’s not the failed outcome that paralyzes us. It’s the possibility of looking stupid, feeling humiliated, or dealing with embarrassment that prevents us from getting started at all.
The first step to being courageous is being willing to look foolish."
- James Clear
Personal Development
* * *
That's it for this weekend folks.
If you enjoyed reading this issue → please hit the like button
If you have any feedback/interesting articles that you’d like to share → simply reply to this email/leave a comment below.
Have a wonderful week ahead!!
- Tejas Gutka
[May 29, 2021]