underscored

@underscored

3 clips · 1 follower

Follow
Tag:second-order-thinkingClear

The best investors I've seen don't have better information than everyone else. They have better questions. They know which facts actually matter and which facts merely feel like they matter.

— Howard Marks, Oaktree Capital Memo: 'Thinking About Macro' (2016)
1mo ago

The biggest competitive advantage in business and investing is a quiet life that allows for more time to think. Being perpetually busy is a social signal, not a productivity strategy—and the market rewards those who can sit still long enough to see what others are too distracted to notice.

3mo ago

I would describe complex systems as multivariable nonlinear systems. And multivariable nonlinear systems are very hard to predict. They can behave one way for a long time, and then one variable can switch and they can behave another way—the weather, stock markets, all these things. There are consequences that can be first, second, or third-order. You can't just think with a linear model or just think about one variable because things can go way off the path. You need to be aware that if you make a change here, it could change something here, which could change something there, and it has to be the whole system.

4mo ago

Underscored — save the words that stop you in your tracks.

Start saving quotes →