Weekly Summary
A quote, A Twitter thread, A mental model, A book I am reading, Federer's last dance.
A Quote
“Never underestimate the man who overestimates himself. These weird guys who overestimate themselves occasionally knock it right off the park.” - Charlie Munger
A Twitter thread
This is a fairly rough idea of the important parts of financial statements for someone who does not know the basics. I recommend seeing the videos made by Brian Feroldi as well to better understand accounting as he simplifies it very well.
A Mental Model
Commitment Bias: We tend to stick with our commitments even when we know we are wrong or could be wrong as we want to show society that we are right and we want to appear and feel right all the time. This causes us to not seek disconfirming evidence against our commitments and we tend to ultimately make another mistake of not recognising our first mistake and acting on it.
A Book I am reading
100 Baggers (Stocks that return 100 to 1 and how to find them) by Christopher Mayer.
This is a very good book on investing where Chris Mayer preaches the style of investing for the long term with a horizon of more than 10 years to achieve extraordinary returns and how to find them. This book is inspired by Phelps’ 100 to 1. So far around 50 pages into the book, I have been very interested because of the way Mayer writes. Some writers write books in a way that you just cannot stop reading and this is one of them.
Federer’s last dance
Federer played his last game of tennis as a professional yesterday in the Laver Cup. Federer and Nadal played doubles for the last time and sadly they lost. After the game, it was very emotional for everyone after the end when we saw him cry but the breaking point for me was the speech where he and Nadal both broke down. Very hard to watch for anyone you can see here.