Sublime

The Pervasiveness of Alternative-Focused Thinking

Value-focused thinking essentially consists of two activities: first deciding what you want and then figuring out how to get it.

William expected four things from his investments: a low multiple of earnings, a high growth rate, strong asset backing and a favorable trading outlook.

The core of John Kelly’s philosophy of risk can be stated without math. It is that even unlikely events must come to pass eventually. Therefore, anyone who accepts small risks of losing everything will lose everything, sooner or later. The ultimate compound return rate is acutely sensitive to fat tails.

these plans require an actuary to certify that funding levels are sufficient to cover future pension fund obligations.