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Friday, 26 July 2019

Weekly Reading: Some Interesting Stuff


1) The psychology of prediction
Anything that Morgan Housel writes is worth reading.
This article describes 12 common flaws, errors, and misadventures that occur in people’s heads when predictions are made.

2) Electric vehicles in EU have to sound like traditional vehicles
I don't know if when cars were first introduced if it was required to sound or look like horses :-) But, new electric vehicles will have to feature a noise-emitting device, under an EU rule coming into force on Monday. It follows concerns that low-emission cars and vans are too quiet, putting pedestrians at risk because they cannot be heard as they approach. All new types of four-wheel electric vehicle must be fitted with the device, which sounds like a traditional engine.

3) Mauboussin on what he would tell his younger self (~read more)
The motto of the Royal Society – “nullius in verba” – roughly translates to “take nobody’s word for it.” Basically, the founders were urging their colleagues to avoid deferring to authority and to verify statements by considering facts. They wanted to make sure everyone would think for themselves.
In the world of investing, that means constant learning—which entails constant reading. So I would encourage my younger self to read widely, to constantly learn, and to develop points of view independent of what others say and based on facts. Specifically, I would recommend developing the habit of reading. Constantly ask good questions and seek to answer them.

4) How global money laundering operates
Corruption isn’t something that happens only in hardscrabble countries led by dictators and plagued by instability. It happens everywhere. Public money is stolen and siphoned away from poor countries at the expense of citizens, while private money is invested in wealthy nations where the well-heeled bask in luxury.
The global financial system, the international financial system, these offshore centers of finance essentially provide an open door from their countries to the world, which means that they can just walk out of their countries with as much money as they like, stash that money offshore, then spend it without anyone realizing that it’s them.
Money moves freely from country to country; law and law enforcement can’t. It becomes very easy if you’re very wealthy to just put your money wherever you like. That means you put your money where it will be treated best, where you will get less scrutiny for it.

5) The anatomy of a fraud
Be wary of companies that are all story and no numbers. If the story is so great, shouldn’t there be plenty of numbers to back it up?


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