Author Archives: admin
Diamond Myths – that De Beers Invented the Engagement Ring
People who say De Beers’ advertising agency is responsible for the tradition of giving a diamond ring to secure a promise of marriage are giving De Beers far too much credit. They point to a famous advertising campaign which started … Continue reading
The Fate of the Elderly in Japan
With the breaking down of its traditional society, most elderly Japanese people are facing a lonely end to life. One of the social costs needed to build the economic miracle of the 70’s was developing the ‘nuclear family’. A family … Continue reading
Money Talks
‘Money talks’ because money is a metaphor, a transfer, and a bridge. Like words and language, money is a storehouse of communally achieved work, skill, and experience. Money, however, is also a specialist technology like writing; and as writing intensifies … Continue reading
Papa! What’s money?
‘Papa! what’s money?’ The abrupt question had such immediate reference to the subject of Mr Dombey’s thoughts, that Mr Dombey was quite disconcerted. ‘What is money, Paul?’ he answered. ‘Money?’ ‘Yes,’ said the child, laying his hands upon the elbows … Continue reading
Try to Avoid Minsky Moments
Hyman Minsky was an economist whose theories were largely ignored during his lifetime and forgotten since his death in the mid 1990’s. They were forgotten until they became glaringly relevant during the financial crisis of 2008. Even today, his work … Continue reading
002 Cognitive Bias: Mental Accounting
Notes from Think Like the Great Investors by Colin Nicholson: New investors are always looking for a guru or a perfect system to tell them what to invest in. This is flawed because no system is perfect all the time … Continue reading
001 Cognitive Bias: Overconfidence
Notes from Think Like the Great Investors by Colin Nicholson: Studies have shown that we are more likely to be confident when we try to estimate something when that thing is difficult to estimate than when it is comparatively easy. … Continue reading
Women are Better Traders Than Men
In Think Like the Great Investors, Colin Nicholson points out that studies have shown women tend to be better traders. Some of the advantages women have include are they: are less confident; take less personal credit for their success; spend … Continue reading
Think Like the Great Investors: Colin Nicholson
Colin Nicholson is a finance academic on the finance speakers’ circuit in Australia and this is not his first book on investment. In this book he looks at aspects of the psychology of investing. The book is in three parts. … Continue reading
Context Adds Value 03
Pepsi has often tried to prove that its cola tastes better than Coca Cola. It tried to prove it by conducting blind taste tests which showed people preferred the taste of Pepsi when they didn’t know what they were drinking. … Continue reading