We solve the mathematical problem of causing an enormous increase in one's bank account balance through human effort.
The podcast therefore has two themes, mathematics and human behaviour. Together, behavioural investing. We take a first principles approach by summarising scientific studies and interviewing psychology and mathematics researchers. This will show us the first principles. We will then reason from these first principles to the best strategy to cause optimal human investing behaviour.
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We solve the mathematical problem of causing an enormous increase in one's bank account balance through human effort.
The podcast therefore has two themes, mathematics and human behaviour. Together, behavioural investing. We take a first principles approach by summarising scientific studies and interviewing psychology and mathematics researchers. This will show us the first principles. We will then reason from these first principles to the best strategy to cause optimal human investing behaviour.
Matt runs Breaking the Market: https://breakingthemarket.com/welcome, introduced to us by Taylor: https://taylorpearson.me/ergodicity. Topics:
Fortune's Formula (https://amzn.to/3rU8sSV)
Invesco S&P 500® Equal Weight ETF (https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=RSP). Input RSP and compare it against the S&P 500 here: https://www.theonlineinvestor.com/cagr-calculator.
A similar fund for Australia is VanEck Vectors Australian Equal Weight ETF (https://www.vaneck.com.au/etf/equity/mvw/performance). It does not perform as highly as $RSP though.
The first post of Matt's we talked about was Repetition Economics: The Story of the Hunter, the Mammoth, and The Wolves (https://breakingthemarket.com/repetition-economics-the-story-of-the-hunter-the-mammoth-and-the-wolves/). This was in the context of the environment of evolutionary adaptedness described by evolutioary psychologists Tooby and Cosmides: https://www.cep.ucsb.edu/primer.html. Both of these items are ESSENTIAL READING for the behavioral investor.
The Undoing Project (https://en.wikipedia.org/wiki/The_Undoing_Project)
Farmer's Fable - a Tale of Cooperation (https://www.youtube.com/watch?v=sR2JxfiH7gk and https://www.farmersfable.org).
This video and site is based on work by the London Mathematical Laboratory and you should really become familiar with them as a source of first principles: An evolutionary advantage of cooperation (https://researchers.one/articles/19.03.00004, https://lml.org.uk/research/economics)
Matt mentioned how geometric returns, under 15% volatility, are 1% less than arithmetic returns, see Vol: https://docs.google.com/spreadsheets/d/1k0IDctrpzyLjFFjYqTiPXZuSTwYFJdK-QZQ3AG859Dw/edit?usp=sharing
On cooperation: https://breakingthemarket.com/an-ode-to-cooperation
The Most Misunderstood Force in the Universe: https://breakingthemarket.com/the-most-misunderstood-force-in-the-universe
Stocks, Treasuries, and Gold: https://breakingthemarket.com/stocks-treasuries-and-gold
Why Market Index Investing Works: https://breakingthemarket.com/why-market-index-investing-works
Milestones: https://breakingthemarket.com/reflecting-at-the-milestones-implementing-the-partial-kelly-strategy
The Ultimate 401k Strategy: https://breakingthemarket.com/the-ultimate-401k-strategy
The Behavioral Investor
We solve the mathematical problem of causing an enormous increase in one's bank account balance through human effort.
The podcast therefore has two themes, mathematics and human behaviour. Together, behavioural investing. We take a first principles approach by summarising scientific studies and interviewing psychology and mathematics researchers. This will show us the first principles. We will then reason from these first principles to the best strategy to cause optimal human investing behaviour.
