In 2001 during a Fortune Magazine interview Warren Buffett said that the stock market capitalization to GDP ratio as a long-term valuation indicator is probably the best single measure of where valuations stand at any given moment. The stock mar... Read more
This is a guest post by Jake @TrendSpider. In this weekend’s analysis, we analyze the moves made by SPY, QQQ, and IWM over the last week and beyond. SPY: Daily Chart QQQ: Weekly Chart XBI: Weekly Chart Related Blog Posts Alerts... Read more
The company that Warren Buffett built along with his business partner Charlie Munger is Berkshire Hathaway Inc. Berkshire is a multinational conglomerate holding company that has been run out of its headquarters located on one floor of the Kiew... Read more
The term Antifragile was coined by author Nassim Nicholas Taleb who was also a professional option trader and former hedge fund manager. Taleb created the word ‘anti-fragility’ because the existing words used to describe the opposite... Read more
This is a guest post by Tino @TradersReality. There have many associations that martial arts have with probably every endeavor in life. The simple reason is that both require discipline. Now you have more than likely read the basics of marital a... Read more
The Occam’s razor heuristic was created by William of Ockham who was a philosopher and theologian who preferred simplicity for explanations over unneeded complexity. Occam’s razor is one way to solve problems using the principle that... Read more
Nassim Nicholas Taleb is a best selling author, philosopher, scholar, and statistician. He had a long career as a professional option trader and hedge fund manager. His expertise was as a risk analyst focusing his work on the problems of outlier... Read more
If you are losing money in the markets or having a large drawdown in capital it could be a good idea to go back and return to first principles. First principles are the core concepts or accepted foundation of beliefs that a theory, process, syst... Read more
Mental models are tools used to explain the process and theory a person uses to understand how something works in the real world. It represents a system of principles that tries to explain the interrelated cause and effect of actions and results... Read more
There are two different methods for reasoning, inductive and deductive. While deductive reasoning looks for certainties, inductive reasoning is used when a circumstance is seen as supplying evidence that a conclusion could be true. The belief in... Read more
