Most people think diversification is about owning many things. It's actually about owning things that are wrong at different times and for different reasons. The goal isn't to avoid being wrong — it's to ensure that being wrong never kills you.
You might also like
Brazil had one of the most concentrated banking systems in the world — five banks controlled over 80% of all deposits — and yet it was one of the most profitable banking systems in the world. The banks were making enormous returns, 20-25% return on equity, while charging customers 300-400% annual interest rates on credit cards.
Invest Like the Best with Patrick O'Shaughnessy
We assume that if we just get that promotion, or find that perfect partner, or move to that new city, we'll finally be happy. But research suggests that we're wrong about what will make us happy, and we're also wrong about how long that happiness will last.
Hidden Brain
AI is essentially looking at patterns and trying to guess what the next word should be. And such that it's a regression to the mean. AI takes everything to the average and people aren't interested in reading average or average doesn't grab your heart. It's something that's an outlier that you haven't seen before that resonates with you.
The Prof G Pod