As a class, we decided that this semester we would start reading an economics book called: "Naked Economics". Our main goal for reading this book is to strengthen our knowledge on economics, while expanding our vocabulary which will be useful for our documentary.
I probably haven`t mentioned this before, but... I struggle with reading! So, Naked Economics has been a challenge. Luckily however, we are not called "Innovators" for no reason; so I decided to get some creative help with my reading. Alireza (A GENIUS) who volunteers at my mom's second grande class has kindly agreed to help. Ali works at a bank so understands this theme completely. Now with his guidance, the science behinds economics is starting to make sense.
I probably haven`t mentioned this before, but... I struggle with reading! So, Naked Economics has been a challenge. Luckily however, we are not called "Innovators" for no reason; so I decided to get some creative help with my reading. Alireza (A GENIUS) who volunteers at my mom's second grande class has kindly agreed to help. Ali works at a bank so understands this theme completely. Now with his guidance, the science behinds economics is starting to make sense.
I began to read and suddenly absorbed a lot of information. The first thing that I learned was how when selling a house, prices can vary, but all of the consumers have the same information. So, if I want to buy a $500,000 house; I would be competing with everyone who also wants to buy a house for a similar price. Then, something amazing that I read was how people that have minor brain damage can be good investors. That is simply because they don`t follow their emotions; they just invest on what`s logically correct and pragmatic. For example, the book describes where monkey`s are just as successful in picking stocks as your "expert stock picker". What do you think? I discussed this with Ali and he gave me an example related to water polo. Investing is like scoring. As any other player I want to win all of my games but sometimes when you have the ball you could get a little nervous or have anxiety. On the other hand, players with a brain damage would not get that anxiety and will enter the court and do whats logical to them. |
"Investing has the same benefits as running a casino: The odds are stacked in your favor if you are patient and willing to endure the occasional setback"
If an investor adviser comes to you promising a 20 or 40 percent return, one of these things should be true:
- This must be a very risky investment in order to justify such a high expected return
- Your investor adviser as stumbled upon an opportunity still undiscovered by all the world`s sophisticated investors, and he as kind enough to share it with you
- Your investment adviser is incompetent and/or dishonest