Link – A wealth of common sense – 10 things investors can expect in 2019

 

 

Lack of selectivity in drugs

Although I knew lack I was aware lack of selectivity of drugs, results in unintended actions, the reason why people on Chemotherapy lose hair was an eye-opener. I knew the science (cause), I knew the effect, yet I was unable to add 2+2. 🙁

A classic exmaples of this lack of selectivity is seen in most cancer chemotherapy drugs. These drugs kill rapidly diving cells – like cancer cells. Unfortunately, other cells that normally divide rapidly include the cells lining the gut, hair follicles, and the bone marrow cells that produce red and white blood cells. This is why cancer patients often lose their hair and become anaemic during treatmnet.

When VIX is high, it’s time to buy. When VIX is low, it’s time to go.

Steven M. Sears in Barron’s, Jan 2019

 

I so agree with this. If you are buying businesses, then buying at the time of when the stock goes down makes sense. There is nothing more satisfying to an investor than to see the business they like and admire on a sale. You need to do your homework, you need to have your thesis formed and ready. And when Mr Market behaves irrationally, you make your move.

The choice – to adapt or be left out.

Science has away of moving forward continually, without waiting to see if society is catching up.

Cynthia Robbins-Roth, From Alchemy to IPO

 

Collective knowledge will always move forward. At times it stumbles, but it get-ups and continues the forward momentum. At an individual level, people fail to recognise this. They allow their biases to reign supreme. Even when presented with data which is counter to their assumption, people do not want to let go their wrong conceptions. I have seen this often. Cultural beliefs come in the way of science and patients suffer, why? Because the beliefs hold on to age-old assumptions which have to fail to keep up with the times.

Wonder – Right or kind?

Wonder (2017) movie is a heartfelt story. You better watch it, I highly recommend it.

There is a quote in there which is repeated more than once.

 

When given a choice between being right and being kind. Choose kind.

 

This is so true, the first time I ever remember someone telling me this was my Mum, she is the kindest soul on the planet, a very biased opinion, I know. The second person to tell me this was my dear friend Amol.

 

When Mum said it, it never made sense to me but it got ingrained in me somehow. Later in my life, in late 20s, Amol ingrained it in me again but this time I was consciously being kind as opposed to being kind by default. The world is not fair and it will never be. During time of distress and when you feel helpless, to show grace under fear; the act of kindness is what will get you through.

So to repeat, when given a choice between being right and being kind. Always, chose kind. 😇

Quote – Persistence – Calvin Coolidge

Nothing in the world can take the place of persistence.

Talent will not; nothing is more common than unsuccessful men with talent.

Genius will not; unrewarded genius is almost a proverb.

Education will not; the world is full of educated derelicts.

Persistence and determination alone are omnipotent.

The slogan Press On! has solved and always will solve the problems of the human race.

– Calvin Coolidge

Broken UX on YouTube app on Sky

YouTube has become a stable channel for consumption. With the democratisation of content generation, I am able to see videos on investing, how to Excel videos whilst at times killing times with cat videos. 🙂

Now, YouTube can also be consumed via the Sky satellite box. Whilst watching a video, I wanted to like it, so that the prediction/suggestion algorithms cater to my likes accordingly. I only discovered then, how broken the whole experience is! You need more than 10 clicks to just like a video whilst watching it via Sky box. Ouch.

 

Click #1 to activate the action bar

Click #2 #3 #4 to navigate go to the menu/vertical ellipsis []

 

Click #5 to enter the menu

Click #7 #8 #9 to reach the thumbs up

 

Click #10 to like the video!

Ouch. Image result for facepalm emoji

YouTube, I am sure you can do better. There is enough space on the bar at activates on the first click.

Follow your passion?

A good response why ‘follow your passion’ is not a sound advice. Very few people get paid for their passion. For most of us finding a career which pays a decent wage.

 

Pick a career that may not be your passion but pays a decent wage.

Chris Rock’s advice for kids – you can’t be anything want; you can be anything you’re good at, as long as they’re hiring – is good. Scott Galloway’s advice – people who tell you to follow your passion are already rich – is great. It’s unpopular to say, but a career that isn’t your passion yet earns a good income can be preferable to the alternative. This is less about money and more about freedom: A low-income passion job may breed resentment as you age and have kids, mortgages, all kinds of higher bills that become burdens large enough to suffocate the joy you get from working in your passion. But a job you merely like that pays a decent income – provided you live below your means a save a chunk of that income – can eventually offer a level of financial flexibility that lets you pursue passions as hobbies, purely for their pleasure.

 

Original article below.

 

Law of diminishing returns applied to information

Diminishing returns is the decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.

This fundamental law of economics plays out in most aspects of our lives. From an investing perspective, gathering more information does not help to make better decisions. And the amount of time effort and money put into acquiring this extra information eats into performance (cost of buying the information eats into the profits).

Sure, you do need to research and study before you can invest. But what to study. And what is the crucial information; the two questions you need to answer instead of trying to gather every bit of information that is out there.