Saturday, July 22, 2023

Look for Broad patterns!

 Focus less on specific individuals and case-studies and more on broad-patterns!

The Psychology of Money ,Morgan Housel:

 

Studying specific individuals can be dangerous - they are extremes of probabilities - more extreme the outcome , more likely it is not applicable to your own life!

because , Outcomes are influenced by extreme ends of luck or risk!

rather you get closer to actionable takeaways  by looking for broad-patterns of success and failure.

More common the pattern, more applicable it might be to your life!

Trying to emulate Warren Buffet investment success is Hard - because his results are so extreme that the role of luck in Life time performance is very likely high 

Luck is something we cannot really emulate! 

Seneca say this : 

The way is long if one follows precepts ,

but short and helpful , if one follows patterns

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