Let’s Start with Safal Niveshak
Just in case you missed any of this on Safal Niveshak over the last few days…
- Restarted my analysis of Warren Buffett’s letters to shareholders…this time covering his views on what makes a business great.
- Launched a new section on the website, titled “Mental Models”, which is aimed to become a repository from which you can create your own latticework of mental models and reframe your investment thought process.
- Shared the secrets of the world’s best business, and how can you also start one of your own.
- Nokia got sold to Microsoft, and here are 10 lessons from the mobile giant’s fall.
- Manish Sharma wrote a comprehensive StockTalk analysis on Bata India, explaining why the business is good but the stock isn’t.
I am currently reading Daniel Kahneman’s amazing book Thinking, Fast and Slow, and came across his thoughts on Availability Bias…
People tend to assess the relative importance of issues by the ease with which they are retrieved from memory – and this is largely determined by the extent of coverage in the media. Frequently mentioned topics populate the mind even as others slip away from awareness.
In turn, what the media choose to report corresponds to their view of what is currently on the public’s mind. It is no accident that authoritarian regimes exert substantial pressure on independent media. Because public interest is most easily aroused by dramatic events and by celebrities, media feeding frenzies are common.
For several weeks after Michael Jackson’s death, for example, it was virtually impossible to find a television channel reporting on another topic. In contrast, there is little coverage of critical but unexciting issues that provide less drama, such as declining educational standards or overinvestment of medical resources in the last year of life. (As I write this, I notice that my choice of “little-covered” examples was guided by availability. The topics I chose as examples are mentioned often; equally important issues that are less available did not come to my mind.)
Stimulate Your Mind
Here’s some amazing content I read during the week gone by…
- If you are in a hurry to do something or get somewhere, you ought to stop and read this.
- Prof. Sanjay Bakshi shared the amazing transcript of his first lecture on behavioural finance to his students at MDI this year.
- Farnam Street reviews Gary Klein’s book The Remarkable Ways We Gain Insights, which Prof. Bakshi also recommended in his transcript mentioned in the above link.
Well, if you haven’t done it already, sign up here to receive Poke the Box in your email…and get ready for stimulating Saturday mornings.
Stop denying the obvious.
Stop deceiving yourself.
See the positive.
Be kind to your heart.
Till next weekend…
Chief Poker – Poke the Box