Investing is a critical component of personal finance, because of it’s potential to help individuals grow their wealth over time. Below is a collection of Wealth Potion articles all about investing.
“Optionality is the property of asymmetric upside (preferably unlimited) with a correspondingly limited downside (preferably tiny).” – Nassim Taleb Many top investors call asymmetric bets the 🏆 Holy Grail 🏆 of investing. Why? Because an asymmetric opportunity is one where the downside is small but the upside is big. You could lose a little… but […]
The Holy Grail of Investing: Asymmetric Bets Read More »
Most investing advice is written for the average person. But you don’t follow Wealth Potion because you want average results, do you? One of the most popular pieces of mainstream advice is “don’t time the market”. Or more commonly, “time in the market beats timing the market”. In fact, I’ve probably cited this quote myself.
Buying the Dip vs. Timing the Market Read More »
Legendary investor and Co-Founder of Oaktree Capital, Howard Marks, puts out memos on his website on a regular basis. Many investors, including Warren Buffett, have very high praise for these memos: “When I see memos from Howard Marks in my mail, they’re the first thing I open and read. I always learn something.” – Warren
#012: Taking the Temperature – Breaking Down Howard Marks’ Memo Read More »
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” According to some, this quote is from renowned physicist and genius, Albert Einstein.Whether he is the origin of the quote is irrelevant. Compounding is truly a magical force for wealth creation. And you
#006: Compounding – The 8th Wonder of the World Read More »
Have you ever noticed that the things you buy cost more than they used to? That’s called inflation.Inflation is the rate at which prices for goods and services rise (Investopedia). It means that over time, the prices of things go up and you need more money to buy the same stuff.Or to put it another
#004: What is Inflation and How to Protect Yourself Read More »
If you want to invest like the best, you need to think like the best.One of the best ways to do this is to learn about their “Mental Models”.In other words, learn about how they perceive and understand the world. By understanding their thought process, you will develop a greater appreciation to how they make
#002: Mental Models and How to Use Them Read More »
