Monday, November 15, 2021

The Zurich Axioms - Max Gunther

 The byline is is a wealth warning - This book can make you rich! There are 12 axioms and it will help to get rich and stay rich (which is more important). Here are the 12 with their minor axioms below them.

1) Take risks. Worry is not a sickness but a sign of health. if you're not worried, you are not risking enough. Put your money at risk. Don't be afraid to lose a little.

- Always play for meaningful stakes

- Resist the allure of diversification

2) Always take your profit too soon. Don't fear regret.

- Decide what gain you want in advance from a venture and when you get it, get out.

3) When the ship starts to sink, jump. Don't pray.

- Accept small losses cheerfully. expect  several when awaiting a large gain.

4) Human behavior cannot be predicted. Distrust anyone who claims to know the future.

5) Chaos is not dangerous until it begins to look orderly

- Beware the historian's trap 

- Beware corelation and causality delusions

- Beware the chartist's illusion

- Beware the gambler's fallacy (I'm hot today)

6) Avoid putting down roots. They impede mobility.

- Do not get trapped in bad ventures because of loyalty

7) A hunch can be trusted if it can be explained 

- Never confuse a hunch with hope

8) It is unlikely that God's plan for the Universe includes making you rich

- If astrology worked, all astrologers would be rich

- A superstition need not be exercised,  it can be enjoyed provided it is kept in its place

9)  Optimism means expecting the best but confidence means you'll handle the worst. Never make a move if you are merely optimistic.

10) Disregard the majority opinion. It is probably wrong.

- Never follow speculative fads. Often the best time to buy something is when nobody else wants it.

11) If it didn't pay off the first time, forget it.

- Never average down.

12) Never take your own long range plans or other people's long range plans seriously. The future is not under our control.

More on this later. But brilliant. Thanks Vinod.

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