Why fair markets require uncertainty for both the buyer and the seller, and why sellers don't need to disclose everything they know to the buyer. Photo by Nitin Bhosale In this episode you’ll learn: What should be disclosed when selling an asset.What is the difference between hiding a defect and not revealing information that might impact the future price.Why fair markets have uncertainty for both the buyers and sellersHow algorithms have changed stock investing and … [Read more...]
197: The Power of Less and Local
Why having less things and activities gives us more freedom and happiness. Why low probability risks are unacceptable if the consequences affect all of us. In this episode you’ll learn: Why removing things can be more powerful then adding things, especially when it comes to happiness.Why we should avoid actions that can have systemic consequences and instead focus on more localized actions.Why we should take bounded risks like starting a business. Show Notes Skin … [Read more...]
196: How To Survive Financially
Why relying on averages is dangerous given our fate is often determined by extreme events and how we react as financial markets, the economy and our own lives evolve. Photo by William Beem In this episode you’ll learn: How times ensures only the best ideas survive.Why we should focus on tail risk.Why are reaction to actual events as time passes is more important than the average expected outcome of multiple scenarios. Show Notes If it's Tuesday, it's a workday in … [Read more...]
164: Optionality—When To Keep Your Options Open and When To Commit
How to use the asymmetric payoff of options, trial and error, and commitments to better yourself financially and in other areas of your life. Photo by Alexandre Chambon In this episode you’ll learn: Why the asymmetry of options is their most valuable characteristic. Why option holders don't care about the average outcome. The importance of trial of errors. How commitments lead to less options but higher growth. Show Notes Story of Thales of Miletus by Aristotle in … [Read more...]
159: What You Need To Know About Volatility
What is volatility, what determines it and how to invest in it. But should you? Photo by Jamie Street In this episode you’ll learn: Why extreme events undermine the average. What is the VIX volatility index. Why the tightening of credit conditions contributes to higher volatility for stocks and bonds. How the demand to sell volatility is keeping volatility low. What to consider when investing in VIX. To learn more about investing in VIX ETFs, check out this helpful … [Read more...]
55: Are You Financially Fragile or Antifragile?
How to gauge your financial fragility or vulnerability and how to be the opposite of fragile. In this episode, you'll learn: What is an option.What is the VIX volatility index.What does it mean to be fragile and antifragile.What is the difference between being long volatility and short volatility.How conifers are antifragile.How to tell if you are fragile or antifragile.What is the difference between black swan events and grey swans. Show Notes MNY023: Smart Beta … [Read more...]
