By Shreesha
This is explained by the following 2 ideas: The Vividness Effect It is the tendency for concrete, sensory rich information to get stored and retrieved easily compared to abstract information. In Action Consider the following sentences: The Availability Heuristic The…
In The Collapse of Complex Societies, Joseph Tainter argues: Societies become more complex as they try to solve problems that affect it as a whole. What is Complexity? Fragility Hides in Dependencies The networks that connect us can amplify any…
2 Ideas are associated with this: 1. Narrative Fallacy Meaning Why We Do This The Fallacy 2. Hindsight Bias Meaning Why It Happens Why It Matters
2 Important Ideas are associated with this point. Problem of Induction The Problem The Conclusion Falsification Principle
Since accounting is based on the accrual concept, accounting earnings often differ significantly from the cash that actually flows into and out of the business. ACTUAL Cashflows (Not Cashflow From Operations) Adjustment Why it is needed (+) Non-cash expenses (Depreciation, Amortization) These…
The Strategy The Philosophy There are 3 core principles: The Result
Meaning Not all Losses are Ruin Problems Why Ruin Problems Must be Considered Seriously “Because the ‘cost’ of ruin is effectively infinite, cost-benefit analysis… is no longer a useful paradigm..When the harm is infinite, the product of any non- zero…
1. “People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are”2. “Innovation is saying no…
Situation Which Is Greater? Reason Credit sales Earnings > Cash flow Revenue before cash Increase in Receivables Earnings > Cash flow Cash not collected Revenue Recognition from Prior Advances Earnings > Cash flow No new cash Situation Which Is Greater?…
“Trust your gut, learn to be scrappy, tune out the noise, and play the long game.”— Ryan Smith, Co-founder, Qualtrics