Complex Systems
by Jason Badeaux and · updated 1mo ago
Complex Systems
by Jason Badeaux and · updated 1mo ago
aron added 1mo ago
When a complex system is far from equilibrium, small islands of coherence in a sea of chaos have the capacity to shift the entire system to a higher order.
Keely Adler added 3mo ago
“leverage points.” These are places within a complex system (a corporation, an economy, a living body, a city, an ecosystem) where a small shift in one thing can produce big changes in everything.
Keely Adler added 3mo ago
The systems analysis community has a lot of lore about leverage points. Those of us who were trained by the great Jay Forrester at MIT have all absorbed one of his favorite stories. “People know intuitively where leverage points are,” he says. “Time after time I’ve done an analysis of a company, and I’ve figured out a leverage point — in inventory
... See moreKeely Adler added 3mo ago
Counterintuitive. That’s Forrester’s word to describe complex systems. Leverage points are not intuitive. Or if they are, we intuitively use them backward, systematically worsening whatever problems we are trying to solve
Keely Adler added 3mo ago
Investment philosophy on "complexity investing" from NZS Capital, emphasizing the need to embrace extreme events, balance resilience and optionality, and focus on quality, growth, and understanding change in portfolio construction.
by NZS Capital
Juan Orbea added 7mo ago
NZS Capital poses that the economy and the stock market are best studied as complex adaptive systems akin to biology. They emphasize investing in companies that are adaptable, long-term focused, innovative, possess long-duration growth, and maximize non-zero-sum outcomes. The approach involves fewer, larger positions in companies highly adaptive to disruption, high levels of quality, growth, and context, and smaller positions in companies with a wide range of potential outcomes.
Stuart Evans added 1y ago
sari added 1y ago
sari added 1y ago
andrea added 1y ago