Weekend Reading for 4/28/2017
Confidently Beating Behavior
I started the Confidence Allocation series with ten basic beliefs broken into three categories; Faith in Markets & Optimism, Knowing What You Need & What You Know, and Beating Behavior.
No matter how optimistic you are or how much you know, if you don’t behave, Mr. Market is going to punish you. Your behavior will have a bigger impact on your wealth than anything else.
Chart of the Week
3 Good Reads
Cash Buys Happiness (Michael Kitces)
“Rather than always encouraging clients to fully deploy their available cash, perhaps instead it would be better for advisors to start by asking clients “how much cash do you need to hold to feel comfortable and sleep well at night”, and then invest what’s left around that constraint. Because in the end, what’s the point of trying to invest a little more cash for a little more return, if in the long run greater wealth buys little additional happiness anyway, but having more-than-enough cash today may have a more positive impact on financial well-being? “
Patagonia’s Controlled Growth (Sean Iddings)
“American style of business is you’re supposed to grow this business as fast as you possibly can. You don’t have to make a profit just show lots of growth so that you can have an IPO, sell a bunch of stock to some suckers and then you know you retire to seize your world and play golf the rest of your life. Well, I don’t believe that it is right. I always felt that if the farmer has this responsibility, well so do I as an owner of a company.“
Hanlon’s Razor (Shane Parrish)
“Applying Hanlon’s razor in our day-to-day lives, allows us to better develop relationships, become less judgmental, and improves rationality. Hanlon’s razor allows us to give people the benefit of the doubt and have more empathy. In this way, the value of Hanlon’s razor is pronounced in relationships and business matters.”
Enjoy your weekend!