Welcome to the 60 new members who have joined us since the last Free Issue. Join the 3230+ others who are receiving awesome stories related to investing and life from brilliant books
Today at a Glance:
Lesson From the Book: Storytelling and Narrative
Tweet: key investing concepts Simplified
Quote from Shane Parrish
Snippets: 4 Snippets from different books
Storytelling and Narrative (How it affects our investing) (Book)
The words we choose give meaning (description) to what we observe. In order to further explain and/ or defend our description, we in turn develop a story about what we believe is true. There is nothing wrong with storytelling. In fact, it is a very effective way of transferring ideas. If you stop and think, the way we communicate with each other is basically through a series of stories. Stories are open-ended and metaphorical rather than determinate.
And yes, investors use narratives. There is a narrative about the economic recovery following the financial crisis. There is a narrative about inflation following the massive printing of money used to combat the financial crisis. There is a narrative for deflation, which tells the depressing story of how the massive debt levels accumulated over the past decade will take years to pay down, causing prices and wages to fall.
For investors, it is important to realize the slippery slope of narratives. Storytelling inadvertently increases our confidence in propositions as the story itself becomes its own proof. “The focus of stories is on the individual rather than the averages, on motives rather than movements, on context rather than raw data,” explains Paulos. Because investors primarily use storytelling to explain markets and economies, the absence of statistical evidence weakens the description.
(For a detailed key takeaway upgrade to a paid plan)
One Tweet
One Quote
The greatest killer of happiness is comparison.
- Shane Parrish
Interesting Books Snippets/tweets shared during the Week
1. Why do Investors focus more on the short term? (Book)
2. There are only 3 kinds of financial predictors (Book)
3. The time the knife has stopped falling, the dust has settled and the uncertainty has been resolved, there'll be no great bargains left. (Book)
4. Why saving rules like "save 20% of your income" are so misguided (Book)
Great Books Deals
Poor Charlie's Almanack is Now available in the Kindle version (Very Affordable than Hardcover) - Click Here
Do Join Paid Plan if you want to receive detailed key takeaways from the books I am reading, Key Takeaways from the best investing blogs and articles, and small investing clips from great investors’ hour-long interviews (Read Freemium Issue)
Thanks for reading.
See you again next week.
Dhaval (Investment Books)
If you enjoyed this, please share it with your friend.