A
few curated reads for the weekend from the team @ Tamohara…
#ON
INVESTING
Markets are cyclical, and successful
investing is an exercise in contrarianism. In order to be counter-cyclical, it
is important to develop an understanding
of cycles, and to build the ability to accordingly add or reduce risk in
the portfolio. That’s the message that Howard Marks delivers in this video
while discussing his latest book.
This essay looks at the theory of diversity, evidence of what
it takes to consistently predict well, and some examples of how to use diverse
ideas to view common investment problems.
Theodore Roosevelt once said, “Nothing
in this world is worth having or worth doing unless it means effort, pain,
difficulty.” On similar lines, this article argues that, "On the way to making serious money, you spend a lot of time
losing serious money."
[P.S. We wrote on similar lines in 'The Painful Multibagger': Read Here]
#ON
BIASES
There is scientific evidence that
fever is helpful in fighting infection. And yet, we seek treatment against
fever. Wouldn't it be rational to not treat fever? But would it be reasonable?
This article delves into the conflict
between being rational and reasonable.
Following up on our ‘unintended consequences’ series,
here’s another example: The internet was intended to make the world smaller,
bringing us all closer to each other. However, what it has achieved so far is
making us closer to strangers, and farther away from our near ones.
#LESSONS
FROM HISTORY
The story of Hatsun Agro - what started as small ice cream maker in Tamil Nadu
and is today the largest private dairy in India.
Two reads related to the U.S. housing boom and the subsequent
sub-prime crisis:
A. How it went
undetected by most, but a few then: Read Here
B. How it is
going unnoticed by most, but a few now: Read Here
#LEARNING & DEVELOPMENT
Drawing from the Roosevelt quote
above, 'Meaning' (some call it enlightenment)
can only be found through suffering and loss. Such suffering loses power over
the mind once we acknowledge and accept it. By achieving the right mental space, man is capable of being a
steadfast rock amidst the chaos of life.
#DID
YOU KNOW?
Forty-one years after it launched
into space, NASA’s Voyager 2 probe has exited our solar bubble and entered
Interstellar Space.
[P.S. Here are some of the comments
posted below the video, just to add some humor to your weekend: Read Here]
Have
a great weekend!!