The Weekend Bulletin (Vol. 1 | Iss. 13)
A digest of some interesting stuff from around the world-wide-web for the discerning investor. Your weekly dose of multi-disciplinary reading.
Volume 1 | Issue 13 | February 15, 2020
Section 1: Investing Wisdom
The objective of investing is wealth creation. And the most fundamental rule of wealth creation is to create an investible surplus by spending less than what we earn. But that is just one way of looking at the equation. This article (and the one linked within) turns this equation on its head. Just as there is a limit to the cost saving that a company can undertake to boost profits, spending less will hit a wall sooner than we think. The solution? Read on to find out.
This is a nice visualisation of the process of compounding: How small increments can lead to momentous outcomes (make sure to hear the commentary at the beginning of the video and at the 1minute mark).
Here is how the concept applies to investing:
A big event this week was the Daily Journal Corp annual meeting, where chairman Charlie Munger spilled some pearls of wisdom:
Short summary (8 tweets)
Five key insights (short article)
Full talk (2 hour video)
Section 2: Mental Models & Behavioral Biases
This is more of a long term project than a weekend read. However, if you want to build a repository of some important mental models, this is a good place to start: 40 major mental models explained in 280 characters or less:
Section 3: Personal Development
I was reminded of this letter by two separate conversations last week. It's one of those meditations that I like to revisit and share with people the most. Written over 2000 years ago, it's as relevant today, as it was when written. Seneca, On the Shortness of Life:
Men do not suffer anyone to seize their estates, and they rush to stones and arms if there is even the slightest dispute about the limit of their lands, yet they allow others to trespass upon their life—nay, they themselves even lead in those who will eventually possess it. No one is to be found who is willing to distribute his money, yet among how many does each one of us distribute his life! In guarding their fortune men are often closefisted, yet, when it comes to the matter of wasting time, in the case of the one thing in which it is right to be miserly, they show themselves most prodigal.
Section 4: Trivia
I can't say if this is entirely true, but it sure as hell makes for an interesting read: "No two drugs have arguably defined human civilization the way alcohol and caffeine have...Researchers now believe the desire for a stable supply of alcohol could have motivated the beginnings of agriculture and non-nomadic civilization."
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Have a wonderful weekend!!
- Tejas Gutka.