Stereotype of investing and life

My sister always behaves completely differently than me. I am always shocked at why she behaves differently. We have both been staying together since she was born. Mostly, whatever I eat and drink is the same as hers, and we even studied in the same school. But I discovered many differences between myself and her .  when I met one of the twins' sisters. I am curious and want to ask some questions about this. Are they the same? Are they the same in all circumstances? I got an answer of no. Why do people change their behavior? Why do people change over a period of time? Why do relationships change over a period of time? I had always listened that she/he changed now.  I found all these answers in the book of peter bevelin seeking wisdom: From Darwin to Munger,         The brain changes continually as a result of our experiences. Experiences produce physical changes in the brain either through new neural connections or through the generation of new neurons...

"Incentives are what drive human behavior. Understanding incentives is the key to understanding people. Conversely, failing to recognize the importance of incentives often leads us to make major errors." In the One of my favourite book Poor's Charlie Almanak suggested two examples for this: Federal Express . The heart and soul of their system – which creates the integrity of the product – is having all their airplane come to one place in the middle of the night and shift all the packages from plane to plane. If there are delays, the whole operation can’t deliver a product full of integrity to Federal Express customers. And it was always screwed up. They could never get it done on time. They tried everything – moral suasion, threats, you name it. And nothing worked. Finally, somebody got the idea to pay all these people not so much an hour, but so much a shift and when it’s all done, they can all go home. Well, their problems cleared up overnight. Early in the history of X...

In the world of investing, the allure of multi-bagger stocks is undeniable. These stocks have the potential to deliver exceptional returns and create substantial wealth for investors. While conventional wisdom often highlights certain financial metrics as indicators of multi-bagger potential, a deeper understanding reveals that what most people know isn't worth knowing. In this blog, we will challenge the common beliefs surrounding multi-baggers and explore the factors that truly drive their success. 1. Looking Beyond High ROCE/ROE While high Return on Capital Employed (ROCE) and Return on Equity (ROE) are considered important financial indicators, they do not guarantee multi-bagger status. Instead, it is crucial to identify companies that have the ability to consistently improve their ROCE and ROE over time. 2. Rethinking Debt/Equity Ratios Low Debt/Equity ratios are often seen as a positive sign, indicating financial stability. However, merely focusing on reducing debt levels doe...

Equations  → Happiness = Health + Wealth + Good Relationships → Health = Exercise + Diet + Sleep → Exercise = High Intensity Resistance Training + Sports +Rest → Diet = Natural Foods + Intermittent Fasting + Plants → Sleep = No alarms + 8–9 hours + Circadian rhythms → Wealth = Income + Wealth * (Return on Investment) → Income = Accountability + Leverage + Specific Knowledge. → Accountability = Personal Branding + Personal Platform+ Taking Risk? → Leverage = Capital + People + Intellectual Property → Specific Knowledge = Knowing how to do something society can not yet easily train other people to do. → Return on Investment = “Buy-and-Hold” + Valuation +Margin of Safety