Even in a fully deterministic dynamic system, if you have enough variables that are irreducible, you will be unable to predict future states of the system because the rate of change of the system will outpace the rate of computation/modeling of that system. Therefore, you … Continue readingComputational Irreducibility
Anyone can buy things. All you need is some money. But you can’t buy a skill. You have to develop skills over time through hard work. One might say, “but you need skills to make money in the first place.” That’s often true but doesn’t … Continue readingTrue Wealth
Just because your opinion or view is in the minority, doesn’t mean its wrong or that you’re insane. In fact, most people have no opinions or views of their own. They simply regurgitate what their respective authorities have told them and indoctrinated into them. They … Continue readingMinority Opinion
The reason that many wealthy people become miserable over time is because their money allows them to access scarce resources at a high frequency. Special occasions become frequent occasions and what was once novel and exciting becomes regular and average. What’s worse, what was once … Continue readingHedonic Adaptation
The whole of objective reality cannot be measured or experienced at any given point in time by any single individual. It can, however, be sliced together through time to get a general and meaningful representation or model. As an example, consider how a movie is … Continue readingObjective Reality
There’s a unique property to finance and financial assets that many people don’t truly grasp. Finance is a zero-sum game. Someone has to lose in order for someone else to win. This is true for all assets from a purely mathematical standpoint. I will give … Continue readingThe Zero-Sum Game
Point 1 – Markets are Complex and Therefore Unpredictable Markets are not complicated but instead extremely complex. This is an important distinction and one that should not to be taken lightly or skimmed over. The state of a complicated system is predictable far into the … Continue readingBroad Views on Markets
Staring at screens all day long. Is this what we’ve all been working towards? Is this the height of human civilization and our technological sophistication? From your phone screen to the television screen, to the computer screen at work, to the movie screen on a … Continue readingThe Downside of Technology
What is a Model? A good model is a simplified but accurate representation of reality that can help us to better understand reality and to develop effective ways (strategies) of interacting with reality in order to reach our goals. All people automatically build models of … Continue readingBuilding Models and Developing Strategies for Finance and for Life
It’s only when we put our thoughts into written form that we can begin to have a better understanding of what we’re actually thinking. Thoughts are often fuzzy, scattered, unreliable. Our minds tend to jump from one topic to another without fully analyzing our ideas … Continue readingThe Road to Self Actualization