There’s something about the start of a new month that feels refreshing. I hope you feel it too.
The first issue of Innings hit people’s inboxes last Friday. I delved into a new framework for confidence using a simple 2X2 matrix.
Anyway, onto this week’s newsletter.
Something I learned
Bubbles in financial markets are a result of short-term thinking.
Bubbles in financial markets occur when the mix of investors changes from long-term investors to short-term investors. The short-term investors are more interested in immediate price increases, and as the proportion of short-term investors increases, they sell assets to each other for short-term gains, driving prices up.
This process feeds on itself till the bubble pops.
I learned this in last week’s book recommendation - The Psychology of Money, by Morgan Housel. It’s a terrific book and I encourage you to pick it up if you haven’t already.
A Weekly Challenge
Watch a TED Talk on an interesting topic.
The internet is a wonderful place to learn anything. I find that TED talks are usually a good place to start. They give you a flavor of a topic and you can figure if you’re interested enough to go down its rabbit hole.
I’ve curated a few to help you get started:
A Book Recommendation
Seeking Wisdom, by Peter Bevelin
My friend @wisdom_theory asked a question to his Twitter followers a few days ago:
I thought for a few minutes and decided that I’d pick Seeking Wisdom, by Peter Bevelin.
It’s a book that efficiently synthesizes multiple topics including evolution, human behavior, systems thinking, and mental models. It is inspired by timeless content created by some of the finest thinkers to have walked the earth.
This book is more expensive than most, but it also delivers more than most.
A must read.
A Thought to Ponder
What setback have you faced that you are most grateful for?
I wish you an eventful October. Make the most of it.