Sunday, February 10, 2013

Oddly Relevant Feb-10-2013


The great Norway diaper arbitrage: Norway supermarkets are offering diapers at nose-bleed levels to lure customers—not only the Norwegians, but also Poles and Lithuanians. Residents trek 600 miles via ferries and cars (about $600 round trip), load up the truck, and bring the diapers back to sell at 2x the price. [Note: beautiful, reminds me of Chinese parents rushing to Hong Kong to purchase baby formulas]…Source: http://www.theatlantic.com/business/print/2013/02/the-great-norway-diaper-racket-is-the-best-arbitrage-ever/272802/

Robert Shiller: Don’t Investment in Housing: Shiller believes that, for most people, housing takes too much maintenance, depreciation, and design cost. What’s more, he thinks currently housing investment is a fad and will not out-pace inflation in the long-term. [Note: I’m not sure, distressed prices + stable cashflow in good management can be very sound investments; sure it’s not easy, but when has making money been easy?]…Source: http://pragcap.com/robert-shiller-dont-invest-in-housing

Oh, that’s right, and Moody’s too: The Justice Department and multiple states are discussing also suing Moody's for defrauding investors. [Note: the other shoe just dropped. Has the business model changed for the worse? This might really be a time to take a speculative long position.]…Source: http://www.reuters.com/article/2013/02/07/us-moodys-investigation-idUSBRE91618520130207

How to make wealth: Paul Graham’s May 2004 essay. Beautifully written with his vibrant, vivid believes eloquently laid out. One noteworthy quote: “To get rich you need to get yourself in a situation with two things, measurement and leverage. You need to be in a position where your performance can be measured, or there is no way to get paid more by doing more. And you have to have leverage, in the sense that the decisions you make have a big effect.” Worthy of 20 minutes of your time….Source: http://www.paulgraham.com/wealth.html

How do people learn? Cognitive scientists have spent a lot of time studying what constitutes expert competence in any discipline, and they have found a few basic components. (1) experts have lots of factual knowledge about their subject, which is hardly a surprise. (2) Experts have a mental organizational structure that facilitates the retrieval and effective application of their knowledge. (3) Experts have an ability to monitor their own thinking (“metacognition”), at least in their discipline of expertise. They are able to ask themselves, “Do I understand this? How can I check my understanding?” [Note: training and learning often means deliberately not being nice to yourself and going against every fiber of being comfortable]…Source: http://www.farnamstreetblog.com//2013/01/how-people-learn/

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