The Fragility of Learning from History
2 Important Ideas are associated with this point. Problem of Induction The Problem The Conclusion Falsification Principle
The Snippets Journal
By Shreesha
Category Frameworks
Getting Actual Cashflows from Accounting Earnings
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 Black Swan Protection Protocol Philosophy
The Strategy The Philosophy There are 3 core principles: The Result
The Ruin Problem
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…
Cases Where Cashflows and Accounting Earnings Differ
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?…
Fundamentals Over Appearances.
“Trust your gut, learn to be scrappy, tune out the noise, and play the long game.”— Ryan Smith, Co-founder, Qualtrics