The Schwar Report - Issue 7
Monday 30th September 2024
Welcome to this weeks edition of The Schwar Report, your weekly primer featuring three interesting reads, two thought-provoking quotes, and one actionable step to start your week on the right foot.
Three Reads to Inspire Your Week
"Thinking, Fast and Slow" by Daniel Kahneman
Why read it: Kahneman's work offers a comprehensive exploration of human decision-making processes and cognitive biases. By understanding the dual systems of thinking - fast and slow - readers can gain insights into their own thought processes, improve their judgment, and make more rational decisions in both personal and professional life.
"LTP Notes 007" by
Why read it: This article provides valuable insights on various investment topics, including the rising costs of AI development, asset performance during stagflation, and the adoption rate of Bitcoin compared to the internet. It offers a diverse range of perspectives to inform long-term investment decisions.
"The 4th Symphony of the Empire Builder" by
Why read it: This piece delves into the strategies of successful entrepreneurs like Brad Jacobs, offering lessons on identifying market opportunities and creating value in complex industries. It provides inspiration for business leaders and investors alike.
Two Quotes to Reflect On
"Our comforting conviction that the world makes sense rests on a secure foundation: our almost unlimited ability to ignore our ignorance."
— Daniel KahnemanReflection: This quote reminds us of the dangers of overconfidence in our understanding of the world. It suggests that we often create a false sense of security by overlooking what we don't know, which can lead to flawed decision-making in investing and life.
"A general limitation of the human mind is its imperfect ability to reconstruct past states of knowledge, or beliefs that have changed. Once you adopt a new view of the world (or of any part of it), you immediately lose much of your ability to recall what you used to believe before your mind changed."
— Daniel Kahneman
Reflection: This insight highlights the importance of documenting our thought processes and decisions over time. In the context of investing, it underscores the value of keeping detailed records of our investment theses and regularly reviewing them to understand how our perspectives have evolved.
One Action Step: Implement a Decision Journal
This week, challenge yourself to start a decision journal. Each time you make a significant decision, record:
The situation and context
The decision you made
What you expect to happen
Your mental and emotional state at the time
At the end of the week, review your journal entries. Reflect on how this practice has impacted your decision-making process and your awareness of your own thought patterns.
Quick Tip: Use a simple template or app to make journaling quick and consistent. The goal is to create a habit of mindful decision-making, not to burden yourself with extensive writing.
That's it for this week's Schwar Report. As always, we're here to help you stay informed, grounded, and focused on your long-term success.
Have a great week,
The S.C. Team
Disclaimer: The content provided in this newsletter is for informational purposes only and does not constitute financial, investment, or other professional advice. While we believe the information to be reliable, we cannot guarantee its accuracy. The opinions expressed are those of the author and do not necessarily reflect the views of Schwar Capital. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. The author may or may not hold positions in the stocks or other financial instruments mentioned. Always do your own research or consult with a qualified financial advisor before making any investment decisions.
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