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Read Old Books
Summary
This article discusses the importance of reading old books in order to learn from the mistakes of past generations. It uses the recent failure of Silicon Valley Bank as an example of how people continuously fail to learn from the past. The author then provides examples of lessons that can be learned from a variety of old books, including those about pandemics, energy, trade, and sports. He argues that reading old books can provide valuable insight into how human beings don't change and why people continue to make the same mistakes.
Q&As
What valuable lesson did Neil Foard learn from his father?
Neil Foard learned from his father to read old books instead of "how-to" manuals.
What does John Train's book 'The Money Masters' reveal?
John Train's book 'The Money Masters' reveals insights from a dozen of the most successful investors from the prior decade.
What are the four qualities that Larry Tisch warns investors about?
The four qualities that Larry Tisch warns investors about are ego, surrounding oneself with yes-men, isolating oneself, and the Peter Principle.
What are the risks of investing in highly correlated industries?
The risks of investing in highly correlated industries include under-appreciating the risks associated with over-concentration, poor risk management, poor messaging, and unintended consequences.
How can reading older books provide an advantage to investors?
Reading older books can provide an advantage to investors by highlighting ways in which things have not changed, and likely will not for years to come. It can also provide insight into durable and long-lasting lessons, and help investors identify blind spots and avoid speculative bubbles.
AI Comments
👍 This is a great article that provides an interesting perspective on why it is important to read old books and learn from past generations. It also provides great insights from some of the most successful investors of the past.
👎 This article is too long and provides too much detail. It is difficult to focus on the main points and the author could have done a better job of condensing the information into a more concise form.
AI Discussion
Me: It's about the value of reading old books and how it can help us learn valuable lessons from the past. The author talks about how people often fail to learn from past generations, and why this might be the case. He also provides examples of how this lack of learning from the past has resulted in costly mistakes, such as the recent failure of Silicon Valley Bank.
Friend: That's really interesting. What implications does this article have?
Me: Well, the implications are that if we want to gain an advantage or a better understanding of the current situation, we should look to the past for wisdom rather than just focusing on the new technology or advice from experts. This article is a great reminder that we can learn a lot from reading old books, which can help us avoid repeating the same mistakes of the past.
Action items
- Read at least one old book per month to gain a better understanding of the past and how it relates to the present.
- Take the time to research and understand the industries and companies you are investing in.
- Consider diversifying your investments across multiple industries and asset classes to reduce risk.
Technical terms
- YouTube Clip
- A short video posted on the video-sharing website YouTube.
- How-to Manuals
- A book or guide that provides instructions on how to do something.
- FDIC Limit
- The maximum amount of money that is insured by the Federal Deposit Insurance Corporation (FDIC).
- GFC
- The Global Financial Crisis of 2008.
- Fed
- The Federal Reserve, the central banking system of the United States.
- Maturities
- The date on which a loan or other financial instrument becomes due and is repaid.
- Mark-to-Market Risk
- The risk that the value of a financial instrument will decline due to changes in market conditions.
- U.S. Treasuries
- A type of debt security issued by the U.S. government.
- Vintages
- A term used to refer to a group of investments made in a particular year.
- Alpha
- A measure of the performance of an investment relative to a benchmark index.
- Egomaniac CEO
- A CEO who is excessively focused on their own power and success.
- Commission
- A fee paid to a broker or other intermediary for executing a trade.
- Subscriptions
- A fee paid to access a service or product.