This wealth consuming mammoth is bigger than we’re told.

It’s a bright summer day. The wind is blowing against your face. The birds are chirping. You sip on a freshly squeezed glass of lemonade as you float along the surface of your pool.

Then it catches your eye: a yellow line extending around the perimeter of the water. You think, “Was that always there?” After a few moments of curiosity you tilt your head back and dose off.

The next week you return to get some more rays. As you step into the water it immediately hits you. The line is still there, but it has grown. Now you…

What the Unabomber, investors, and entrepreneurs have in common.

“Everyone needs to have goals whose attainment requires effort, and needs to succeed in attaining at least some of his goals,” wrote the Unabomber, Ted Kaczynski, in his late 1995 manifesto published in the Washington Post.

“We can divide human drives into three groups: (1) those drives that can be satisfied with minimal effort; (2) those that can be satisfied but only at the cost of serious effort; (3) those that cannot be adequately satisfied no matter how much effort one makes…In modern industrial society natural human drives tend to be pushed into the first and third groups, and the…

On rapidly scaling from $10k to millions.

How do you turn a small snowball into a large snowball?

You find yourself a snowy hill to roll it down.

As you roll the snowball down the hill, it grows as it picks up more snow. The larger it gets, the more surface area it has and the more snow it picks up. The size of your once tiny snowball starts to really take off. This snowball effect is the essence of compound interest.

When asked how to turn a small sum of money into a large sum of money, Warren Buffett answered, “Start young.” Like many, Buffett began…

Ask Warren Buffett and Charlie Munger.

When it comes to investing, everyone has heard that they need to diversify. Proponents of diversification argue that it reduces financial risk. But is diversification really necessary to reduce risk? The answer is no, but it depends on the type of investor you choose to be.

To see why diversification is not necessarily the best investment strategy, it is important to first understand why so many investors, financial advisors, and finance professors promote diversification.

Unsystematic risk

A portion of the total risk of an investment is thought to be biased, in the sense that it arises from the business, industry, economy, country…

The satellite internet constellation that will connect the Earth.

On June 29th, SpaceX CEO Elon Musk made a 30 min virtual appearance at the Mobile World Conference Barcelona 2021. There he provided details on the progress and future plans of Starlink, the satellite internet constellation currently under construction by SpaceX.

The overarching goal of Starlink is to serve areas of Earth where internet connectivity either does not exist or is very limited and/or expensive. Musk views Starlink as “filling in the gaps” between areas that are adequately served by 5G wireless or fiber optic networks. Specifically, Starlink is targeting the ~3–5 % most difficult to reach areas on Earth.

Current Progress.

Only a few investors caught it…

Tesla is one of the most contentious stocks of our time. It is by far the highest valued automaker in the world. With a PE ratio of ~700 and a market capitalization the size of the next five largest automakers combined, Tesla stock has left bears feeling that the market has lost all sensibility (if it had any to begin with). In 2020, Tesla delivered 500,000 vehicles, nailing a target Elon Musk forecast in 2014. However, this number pales in comparison to the 9.5 million vehicles sold by Toyota Group in that same year.

On the other hand, bulls argue…

Even if conventional wisdom says otherwise!

The proliferation of new financial services, investing apps, and the elimination of trading fees have made investing more accessible to retail investors than ever before. According to a recent study by Charles Schwab, 15% of all U.S. stock market investors began investing in 2020.

These so-called “Generation Investors” are eager to learn and improve their investment plans. In 2021, 72% of these new investors say their approach is to buy and hold for long term gains as compared to 56% in 2020.

Understandably, many Generation Investors are beginning with smaller sums of money than their pre-2020 counterparts. Out of a…

Know where it was, see where it’s going.

Historians believe that money was invented much earlier than writing, perhaps anywhere from 6 to 9 thousand years ago. Unsurprisingly, the early history of money is not well-documented.

Before the invention of money, people in need of goods or services would enter into an agreement to trade, or barter. Bartering did not work very well because it was inefficient. If a person wanted apples and only had chickens to trade, he would have to find another person who not only had apples but also desired chicken. …

How to stick with an underperforming stock, and buy more when it hurts.

Impulsive trading and indecision are behaviors that play a major role in who wins and who loses in the stock market. A little perspective can save the restless investor many sleepless nights when his or her portfolio is getting slammed. Anyone who is modestly observant of history and past trends understands and expects the stock market to go through cycles and corrections. However, when hard times finally arrive, many investors find themselves second guessing their investments and even contemplating taking a loss. …

On the deceptive cadence in Mozart’s works.

In music, a cadence is a harmonic sequence that creates a sense of resolution or pause. It is one of the most fundamental structures in music.

Mozart’s manner of preparing and executing cadences is unique to his compositional style, so much so that one might call such passages “Mozartian”.

In western tonal music, authentic cadences are the most common class of cadences. Consider, for example, the perfect authentic cadence (PAC) consisting of the final two chords of Mozart’s Piano Sonata №13 in B-flat major. …

Steven Yamada

A scientist who loves coffee, classical music, running, and investing.

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