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
Becoming 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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