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Latticework of Mental Models: Echo Chamber Effect

A few weeks back I was reading a report penned by Amay Hattangadi and Swanand Kelkar from Morgan Stanley. In that report, I came across a very intriguing word called “Echo Chamber”. The authors wrote –

The most telling reaction post Brexit was from a London based friend who apart from lamenting the outcome went on to say that he didn’t know of a single person who was likely to have voted “Leave” and hence felt that the outcome was rigged. This is what we called the “echo chamber” in one of our earlier essays. We tend to be surrounded by people who are like us and share our world view. Social media accentuates this by tailoring our news and opinion feeds to match our pre-set views. To avoid falling into this homogeneity trap, one needs to seek out and dispassionately engage with people whose views differ from your own and that’s true not just for current affairs but your favourite stocks as well.

The word ‘echo chamber’ painted such a vivid picture in my mind that I decided to give it a permanent place in my mental attic. Echo chamber has thus become an important node in my latticework of mental models.

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Dealing with Failure in Life and Investing: Lessons from the Chaos Monkey

Amazon Web Services (AWS) is the Titanic of cloud hosting. It provides on-demand cloud computing platforms to both individuals, companies, and governments, on a paid subscription basis. The platform is designed as a backup to the backups’ backups that prevents hosted websites – including some of the largest in the world – and applications from failing.

Yet, like the Titanic, AWS crashed in April 2011, taking with it popular websites like Reddit, Quora, FourSquare, HootSuite, and New York Times, among many others, for four days.

It faced another major outage in February 2017, which again brought a large number of key websites down on their knees.

There was, however, one site that kept chugging along well during both these instances, despite also having AWS as its host at both the occasions.

This was Netflix, the world’s leading streaming video website and one that owns a dominant share of downstream Internet traffic – almost 35%; double of YouTube – in North America during peak evening hours.

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What You Need to Succeed in Investing (Hint: It’s Not Genius Brain)

“Hey Vishal, have you read about how Albert Einstein lost so much money in the stock market?” asked my friend Ravi as we met for dinner over the weekend. “Yes Ravi,” I said. “In fact, he lost most of his winnings from the 1921 Nobel Prize in the stock market crash of 1929.” “Wow!” Ravi […]

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Announcing – Classroom Course in Value Investing

I’m happy to announce my first ever comprehensive classroom course in Value Investing titled – Value Investing Blueprint. I will be conducting this course in association with Pune-based FLAME University, under the aegis of its FLAME Investment Lab, which is an initiative that strives to deliver the concepts and decipher the art of value investing […]

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Safal Niveshak is 6 Years Old!

Birthdays aren’t a big deal when you grow up. And if you are like me, with a fading memory, you sometimes forget that you are growing up fast. Like it happened yesterday. It took a reminder from someone to, well, remind me that it was Safal Niveshak’s birthday. 😉 So, this initiative that I started […]

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10-Point Action Plan for a Young Earner

Noted Irish playwright and philosopher George Bernard Shaw opined, “Youth is wasted on the young.” What he possibly meant was that many young people have everything going for them physically; they’re in the best health they will ever be in, and their minds are sharp and clear. However, they lack patience, understanding, and wisdom which […]

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Value Investor Interview: Brent Beshore

Note: This interview was originally published in the March 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. Brent Beshore is the Founder and CEO of adventur.es, a family of […]

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Small Circles: The Theory of Mastery in the Art of Learning and Investing

One of the best books on the art of learning I’ve read is, well, The Art of Learning by Josh Waitzkin. Josh is a champion in two distinct sports – chess and martial arts. He is an eight-time US national chess champion, thirteen-time Tai Chi Chuan push hands national champion, and two-time Tai Chi Chuan […]

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