Interview: Investing, Content & BOOH

Hey!

I just did this interview with Ryan Faulkner-Hogg.

We talk about Investing, The Content Game, and Breaking out of Homeostasis.

(…among many other things — I enjoyed the conversation.)

The interview was published here:

Watch the whole thing:

The time stamps in the description are also great, if you want to jump ahead.

(The audio is a bit low, so turn up the volume or use headphones.)

Brief summary of main points:

Investing:

-I emphasize value investing.

Content Game: 

-I emphasize the S-curve.

BOOH:

-I emphasize behavior change by changing your feedback loops.

Investing:

When you’re investing, you are making a risk-adjusted bet. What’s the expected value going to be? Hopefully you’ve found something the rest of the market hasn’t quite caught onto yet.

My Investing Process:

High stakes trading with maybe 20% and focused value investing with the remaining 80%; a few solid positions of good businesses I believe are undervalued…. Small-cap businesses where I’m not necessarily competing with professional analysts (whose job is to monitor that one company)…. Making a forecast what I think profits will be 3-4 years forward and then calculating the CAGR backwards.

EPR:

The more you know, the more you can rely on your pattern recognition.

4 Pillars of Wakefulness:

The 4 Pillars of Wakefulness: Goal-orientation, Novelty, Variation, and Surprise. Those are things that activate the prefrontal cortex in a natural way. And you actually have all four of these in investing. It’s like a game you can always improve at.

The most important parts from Breaking out of Homeostasis:

Changing your feedback loop and getting into a winner effect. Those are the two most important takeaways from the book.

Future of Knowledge Workers

The more comfort you have built into your life, the more responsibility you have to push yourself.

OTHER POINTS:

  • Momentum is the major determinant of your homeostasis
  • Distinguish between the Practical / Analytical / Creative process, and focus on one at a time
  • When you have lots of momentum with an activity, there is no internal resistance. When you don’t, you need to generate it
  • Investing is largely about (Expert) Pattern Recognition — but you have to work hard and study to get it
  • The content game is changing rapidly due to low entry barriers and new media distribution
  • Crypto is the world’s largest non-illegal network marketing scheme

P.S:

Here’s another interview in written format.

Comments

  1. When is the expanded version of Breaking out of Homeostasis coming out mate? Been looking forward to that for a long time.

    • I hope to finish this in the first half of 2021, along with an online course, a revamp of the website, and publishing a ton of articles.

      • Tomaz Korosec says

        Waiting for it for sooo long. Please publish new version soon. Hope it gets some new material too, since from the first version you for sure learned some new things :)

  2. Interesting take on Joe Rogan.

  3. “The more comfort you have built into your life, the more responsibility you have to push yourself.”

    If there’s any one lesson from the Corona Virus, it’s this. Most people can’t work without an office or the (positive) pressure from peers. I know everyone has been flexing and virtue signalling on Twitter about how productive they’ve been in isolation, but from what I’ve seen in my own life, most cannot handle the excess of free time.

  4. Good interview and nice to hear from you again.

    A question about investing:

    What is the minimum amount of money required before spending time actively researching, in your opinion?

    • That depends entirely on you and how you think about it.

      $50k might be a good baseline, from an opportunity cost standpoint. Less than that and you might as well outsource it to a good fund. But it depends on your interest level. If you enjoy analysis and crunching numbers, why not? And if so, you could just as well start now, due to the benefits of the learning curve. There is much to learn and you’re not getting younger.

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