An insightful post about how the passion economy will disrupt traditional competitors.
Passion economy is the ability of “new digital platforms enable people to earn a livelihood in a way that highlights their individuality.“
Disruption happens as “these workers can develop new products/services that serve previous non-consumers and over-served consumers. This means that across different industries, new Passion Economy platforms have the potential to disrupt incumbents.“
As opposed to some video games, where probabilities are tweaked to psychologically hook players, in poker “the probabilities are what they are: they don’t accommodate. Instead, they force you to confront the wrongness of your intuitions if you are to succeed. “Part of what I get out of a game is being confronted with reality in a way that is not accommodating to my incorrect preconceptions,””
This from a brilliant article by a psychologist learning to play poker.
Our beliefs are skewed because small samples don’t mirror large ones, that this leads to the emergence of the gamblers fallacy, but perhaps this bias actually has positive advantages through an internal locus of control and our understanding of luck.
All have clear relevance to investing.
For a full 1 hour podcast from the author – head here.
This series is one of the better when it comes to understanding what has gone wrong for value investors.
The first looks into whether value is actually cheap.
“The evidence brings us full circle to Arnott’s observation that the problem with the Value Factor has not been the absolute performance of Value stocks. The problem has been shorting the Glamour stocks“.
The second, propose something very intriguing – “that looking through the lens of optionality reveals that the source of excess returns to factors are not a function of the securities themselves, but rather the rules of portfolio construction and the embedded optionality these rules create“
“Wherever there’s a major shift in the American landscape in the past half-decade—be it political or cultural—there, somewhere on the donor list of the political campaign, or among the investors in the controversial technology, is Peter Thiel.“
On investing he says – “It’s really, really, really hard to be a good poker player. And if you’re kicking yourself every time you have a bad hand, the bad habits just simply happen. You just need to be able to have a system that lets you think through the process…“
If you have ever invested in Japanese stocks it can feel like learning all over again.
This is a really great article written by a westerner fluent in Japanese who has spent his whole professional career in Japan including starting a business.
