Mental Models
“You've got to have models in your head. And you've got to array your experience—both vicarious and direct—on this latticework of models.” - Charlie Munger
Value Trading – Does It Ever Make Sense?
Article by DAVE ROTTMAN I would like to discuss and elicit feedback from our community on the topic of value trading. What I mean by value trading is the purchase and sale of stocks in a shorter time frame than traditional long-term investing, where the buy and sell decisions are driven by the exact same…...
Continue readingMore TagBecoming a Better Investor: Reading One 10k After Another
- by Andrew Kuhn
I’m a big process guy. I believe if you have the correct processes in place and develop the right habits over time, you will succeed in whatever it is that you want to accomplish. Geoff and I get asked all the time a variation of: How do I become a better investor? The answer is…...
Continue readingMore TagPsychological Tendencies to Guard Against In Investing
- by Andrew Kuhn
“The first principle is that you must not fool yourself and you are the easiest person to fool” -Richard Feynman Do Something Bias, Social Proof and Confirmation Bias… Let’s walk through a theoretical situation where these three powerful Biases can destroy someone in the field of investing: A new Investment Manager named Benjamin just…...
Continue readingMore TagThe Punch Card Mindset
- by Andrew Kuhn
“I could improve your ultimate financial welfare by giving you a ticket with only twenty slots in it so that you had twenty punches–representing all the investments that you got to make in a lifetime. And once you’d punched through the card, you couldn’t make any more investments at all. Under those rules, you’d really…...
Continue readingMore Tag“Go Where There Are Network Effects”
“Go Where There Are Network Effects” – Zero to One book, Peter Thiel A business that has a strong and enduring Network Effect can be a great business to invest in. It is one of my favorite tools in my mental-model toolbox, and is one that I look for and think about often. The best…...
Continue readingMore TagIt’s All About the Long Term: Amazon’s 1997 Shareholder Letter
“Jeff Bezos is the most remarkable business person of our age, I’ve never seen a guy succeed in two businesses almost simultaneously that are really quite divergent in terms of customers and all the operations.” – Warren Buffett I really do agree with Warren in the statement above. Anyone who knows me, knows I am…...
Continue readingMore TagGeoff’s Mental Model #1: “Market Power”
“The single most important decision in evaluating a business is pricing power. If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you’ve got a terrible business.” – Warren…...
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