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You are here: Home / 2021 / Archives for January 2021

Archives for January 2021

A Cheat Sheet To Avoid Stock Market Ruin

In his book, Skin in the Game, Nassim Taleb runs an interesting thought experiment where he talks about two cases of playing the casino.

Equate the first case with ‘stock market trading’ in general –

…one hundred people go to a casino to gamble a certain set amount each over a set period of time, and have complimentary gin and tonic. Some may lose, some may win, and we can infer at the end of the day what the “edge” is, that is, calculate the returns simply by counting the money left in the wallets of the people who return. We can thus figure out if the casino is properly pricing the odds.

Now assume that gambler number 28 goes bust. Will gambler number 29 be affected? No.

You can safely calculate, from your sample, that about 1 percent of the gamblers will go bust. And if you keep playing and playing, you will be expected to have about the same ratio, 1 percent of gamblers going bust, on average, over that same time window.

[Read more…] about A Cheat Sheet To Avoid Stock Market Ruin

The Sketchbook of Wisdom: Pre-Order Ends Today

This post is to notify that pre-order for my new book – The Sketchbook of Wisdom: A Hand-Crafted Manual on the Pursuit of Wealth and Good Life – closes today.

Click here to read more about the book and order your copy now.


Packed with 50 timeless ideas from Lord Krishna to Charlie Munger, Socrates to Warren Buffett, Lao Tzu to Nassim Taleb, Swami Vivekanand to Steve Jobs, and Sant Kabir to Naval Ravikant – as it applies to our lives today, The Sketchbook of Wisdom is a manual on virtue, happiness, and the pursuit of wealth and good life.

Click here to read more about the book and order your copy now.

Look forward.

With respect,
Vishal

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