Free Stock Analysis Excel

Latticework of Mental Models: Manufactured Memories

Yesterday when I logged into my Facebook account, it showed a picture I had posted six years back. In the frame, I was having lunch with an old school friend.

It brought a smile on my face.

Interestingly, I had completely forgotten about the lunch. I just couldn’t remember being present when that picture was taken. My brain had conveniently erased that incident from memory.

I am sure it happens to others too. Also, Facebook knows it, so they introduced this feature. Bringing back those lost memories creates a pleasant experience which isn’t much different from the one when you find money in your old pant pockets.

How would it be if we never forgot anything? Why does our brain choose to remember something and spaces out on others? Is there an evolutionary reason behind this behavioural quirk? Let’s explore these questions today.

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The Biggest Killer of Investment Returns

Somewhere, right this very moment, an investor you know of is having more fun than you. He has just made a lot of money – more than you – thanks to the graphite electrode stock he owns. And you just missed out on it.

Not just that, you realize you have missed out on so many other stocks that others own and are making tons of money on, and you aren’t. In fact, you may even know of someone who owns all the stocks that are rising, and you are cursing yourself for not being that person, plus envying him.

Not just that, looking at your portfolio you realize that somewhere, something isn’t right. There’s one stock, or maybe more, that hasn’t done much even when other stocks you don’t own have skyrocketed.

I know this affects you, annoys you. And that’s a normal emotion to have, and one you have no control over, which is also normal. Your lizard brain – part of the brain that is responsible for primitive survival instincts such as aggression and fear – is hardwired to behave that way.

So, even when you own more assets and privileges than you could have imagined by this age, and are reasonably happy in your life outside stocks, you feel terrible because you missed out on a few stocks that have done wonders for other investors you know of.

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16 Investing Lessons from a Superinvestor the World Forgot

What do you call an investor who earned 16% per annum on average over a 47 year period – that’s a 1,070-bagger – and is not called Warren Buffett? What if I told you that this investor… Did not care about corporate earnings Rarely spoke to managements and analysts Did not watch the stock market […]

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How Fortunes are Made in the Stock Market

I was re-reading this book titled “100 to 1 in the Stock Market”, in which the author Thomas Phelps talks about, well, how investors can grow their wealth one hundredfold through buy-and-hold investing. I came across this book the first time in 2015 through a recommendation, and then realized there was a frenzy around with […]

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Value Investing Workshop & Camp Millionaire: Chennai & Kolkata

If you aren’t in Chennai or Kolkata, you may skip reading this post. If you are still reading, this is to announce our upcoming Value Investing Workshop and Camp Millionaire (money workshop for kids) in Chennai and Kolkata. For the uninitiated, Camp Millionaire is our game and activity-based financial education program for children of age […]

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Of Free Brains and Effortless Money

In the hospital, the relatives gathered in the waiting room, where a family member lay gravely ill. The doctor came in looking tired and dull. “I’m afraid I’m the bearer of bad news,” he said as he surveyed the worried faces. “The only hope left for your loved one at this time is a brain […]

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My Interview with Morgan Housel

Note: This interview was originally published in the April 2017 issue of our premium newsletter – Value Investing Almanack (VIA). To read more such interviews and other deep thoughts on value investing, business analysis and behavioral finance, click here to subscribe to VIA. I sincerely believe in what Charlie Munger often says about envy, that […]

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I Disclose

We are in a bull market, without doubt. The index made up of subscribers to my investment newsletter The Safal Niveshak Post (let’s call it ‘SN Index’) has outperformed the BSE-Sensex and has crossed the critical resistance level of 36,000. The CAGR of this index over the past six years since it was launched has […]

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