P. 66 – Cognitive Strain versus Cognitive Ease. if you want to persuade with text, make sure there is high contrast between background and text, use simple language, use rhymes. If you want to engage system 2 (learn something) read unclear text (cognitive strain). Stocks with easy to pronounce names outperform those with complex names. … Read more
P.54 – Priming suggests that we don’t know ourselves as well as we think. Simple, common gestures affect how you interpret experiences and how you behave. Nodding while listening to someone makes you more likely to accept what they are saying. Acting calm and smiling makes you feel calm and happy. P.55 – money priming … Read more
P.40 – to maintain a coherent train of thought and engage in effortful thinking requires self control. the frequent switching of tasks and speeded up mental work are probably not intrinsically pleasurable -we will avoid them when possible. That is how the law of least effort came to be a law. Even without time pressure, … Read more
P.20- intuition from experience is good but not all people make intuitive judgements from experience (they are inexperienced ) – Enter system 1. System 1: fast, immediate (I like this) involuntary, effortless System 1 can think metaphorically, causally, associatively but not statistically (a mode that requires multiple forms of thinking at once) – not accessible … Read more
Brett made an interesting point that sounds like complete bullshit, but interesting bullshit. Celibate religious men extend their genetic code by maintaining their way of life and teachings.. I think there are 2 problems with that theory. A society can maintain its legacy and ethical grounding without celibacy (fathers and mothers preserve the ethical code) … Read more
Five Quotes The stock market is a device for transferring money from the impatient to the patient. – Warren Buffett If stock market experts were so expert, they would be buying stock, not selling advice. – Norman Ralph Augustine In the short run, the market is a voting machine. But in the long run, it … Read more
Five Myths Investing is the same as gambling. The stock market is just for rich people and brokers. Buying a stock simply because its market price has fallen is a good strategy. Stocks that go up must come down. A little knowledge is better than none. Source
Six Books The Greatest Trade Ever is a superbly written, fast-paced, behind-the-scenes narrative of how a contrarian foresaw an escalating financial crisis–that outwitted Chuck Prince, Stanley O’Neal, Richard Fuld, and Wall Street’s titans–to make financial history. The New Financial Order: Shiller describes six fundamental ideas for using modern information technology and advanced financial theory to … Read more
5 Books The Warren Buffett Way: Lays out all the rules of thumb Buffett uses in his investing and walks the reader through them with case studies out of Buffett’s own investment portfolio. The Essays of Warren Buffett: Lessons for Corporate America: Surprisingly, Buffett has never written a book himself. Taken in total, however, his shareholder … Read more
3 Myths He’s a value investor He’s a long-term investor He’s a straight shooter Source: Jamesaltucher.com