The biggest risk isn't that you'll lose money — it's that you'll succeed, and then make a bigger, more confident bet on something you don't actually understand as well as you think you do.
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We all have mental maps — representations of how we see ourselves and the world. But the amazing thing is, many of us use mental maps that were drawn up a long time ago, in a completely different context. And we continue to use them, even when the world changes, and even when we change.
Hidden Brain
Most of us recognize that we don't always act in our own best interests. We procrastinate. We reach for the candy bar instead of the apple. We say things we later regret. Psychologists have long recognized that our behavior is shaped by mental maps — internal representations of the world that guide our actions, often without our awareness.
Hidden Brain
The nice thing about buying things in private markets is you can buy a business at eight times earnings that a public market might price at 20 times earnings, and that gap represents the opportunity. The issue is the information set you're working with is much worse, the liquidity is much worse, and the alignment between you and the people running the business is often much worse.
Jeremy Giffon — Invest Like the Best with Patrick O'Shaughnessy