Let’s Start with Safal Niveshak
As Mr. Market behaves like a drunkard trying to get on a horse, here’s time to revisit some old posts dealing with how to behave during a stock market turbulence like we are seeing now –
- Simple thoughts on how to deal with stock market turbulence.
- Stock prices may be falling, but the stock market is getting an expensive place. Intrigued? Read this post.
- Your 10 big questions on the stock market crash answered.
- An old, but highly relevant presentation on the return of uncertainty, and how you can deal with it.
- Curse of the bull market is back to haunt investors.
Stimulate Your Mind
Forget the stock market for now, and consider some amazing content we read in recent times…
- Who is the happier man? He who has braved the storm of life and lived or who has stayed securely on shore and merely existed? Hunter Thompson on living vs existing.
- The investment team of f MIT Investment Management Company delivered a lecture to Prof. Bakshi’s students at MDI. A note on the same by Prof. Bakshi.
- Bill gates writes about the best teacher he never had.
- Parallels between architecture and investing.
This is what Nassim Taleb wrote about Peter Thiel’s book Zero To One–
If a risk taker writes a book, read it. If it is Peter Thiel, read it twice. In fact, read it thrice to be safe.
For the uninitiated Peter Thiel was the founder of PayPal (with Elon Musk) and an early stage investor in Facebook, Linkedin and SpaceX. He is one guy who has been there, done that. Thiel’s ideas are a must read for every entrepreneur.
Like a Zen master, Peter Thiel doesn’t believe in giving ready made answers. His ideas are more like an exercise in thinking.
The most important skill an entrepreneur requires is hiring the right people. How do you find the right people? Here’s Thiel’s favorite interview question to assess people –
What important truth do very few people agree with you on?
If you think about it, it’s a very tough question. You can’t make up an answer on the spot. The only way you can answer it convincingly is if you have spent a lot of time thinking (independently) about a tough problem.
Thiel writes –
This is a question that sounds easy because it’s straightforward. Actually, it’s very hard to answer. It’s intellectually difficult because the knowledge that everyone is taught in school is by definition agreed upon. And it’s psychologically difficult because anyone trying to answer must say something she knows to be unpopular. Brilliant thinking is rare, but courage is in even shorter supply than genius.
Answers like “Our educational system is broken and urgently needs to be fixed” or “There is no God” are all bad answers. When most people answer contrarian questions, they usually try to extrapolate the present.
A good answer looks something like this – “Most people believe in x, but the truth is the opposite of x”.
Answering contrarian questions and noticing what is ‘not present’ is a skill that can take you closer to seeing the future. Contrarian questions allow you to see the present in different ways and good answers give you a glimpse of the future.
As Taleb says, this book is not just a must read but a must re-read. So if you’ve already read the book, do yourself a favour. Read it again.
Find the answer to – What important truth do very few people agree with you on?
Choose Must, always.
Stay happy, stay blessed and keep poking!