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Sol Price on Becoming Your Customer’s Best Friend
Sol Price is a legend in the retail business. Price founded one of the first discount retailers, FedMart, in the 1950s, and then later the pioneer warehouse club Price Club, which he later sold to...
View ArticleWhat Are You Doing About It? Reaching Deep Fluency with Mental Models
The mental models approach is very intellectually appealing, almost seductive to a certain type of person. (It certainly is for us.) The whole idea is to take the world’s greatest, most useful ideas...
View ArticleMental Model: Bias from Liking/Loving
The decisions that we make are rarely impartial. Most of us already know that we prefer to take advice from people that we like. We also tend to more easily agree with opinions formed by people we...
View ArticleBias from Disliking/Hating
(This is a follow-up to our post on the Bias from Liking/Loving, which you can find here.) Think of a cat snarling and spitting, lashing with its tail and standing with its back curved. Her pulse is...
View ArticleWho’s in Charge of Our Minds? The Interpreter
One of the most fascinating discoveries of modern neuroscience is that the brain is a collection of distinct modules (grouped, highly connected neurons) performing specific functions rather than a...
View ArticleCharlie Munger on Getting Rich, Wisdom, Focus, Fake Knowledge and More
“In the chronicles of American financial history,” writes David Clark in Tao of Charlie Munger: A Compilation of Quotes from Berkshire Hathaway's Vice Chairman on Life, Business, and the Pursuit of...
View ArticleThe Power of Incentives: Inside the Hidden Forces That Shape Behavior
“Never, ever, think about something else when you should be thinking about the power of incentives.”— Charlie Munger According to Charlie Munger, there are only a few forces more powerful than...
View ArticleComplexity Bias: Why We Prefer Complicated to Simple
Complexity bias is a logical fallacy that leads us to give undue credence to complex concepts. Faced with two competing hypotheses, we are likely to choose the most complex one. That’s usually the...
View ArticleThe Best of Farnam Street 2018
We read for the same reasons we have conversations — to enrich our lives. Reading helps us to think, feel, and reflect — not only upon ourselves and others but upon our ideas, and our relationship with...
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An Investment Approach That Works
There are as many investment strategies as there are investment opportunities. Some are good; many are terrible. Here’s the one that I lean on the most when I’m looking for low risk and above average...
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