Quantifying downside risks for an action. Car or house loan and losing job, or expensive college but have the chance of changing major.
Discovering your own triggers and behaviors. Marshmallow test, maybe with Skittles or something and doubling by end of class if they are all there?
Not really amassing a bunch of money, but rather trying to avoid very scary and annoying pitfalls of possible!
Your money or your life premise, maybe worth a reread, especially of new one. Your purchases now represent your life required to pay that thing.
Am always available for questions.
I would like to run another <basics> session. What does next week look like? I’ll try for Friday.
Why are they so recommended? It's not necessarily for the typical reasons.
Be wary of the tradeoff you're making when you give up your time in researching looking for outperformance.
However, Mohnish Pabrai gave some points in his talk to new investment manager wannabees in China:
Explain that I am naturally pretty frugal. Started at step… 3? So can't really help people at step 1 or 2.
Some sample questions I should be prepared for:
Mack's wife is risk averse and debt averse. However, if you play out a mortgage over the long term vs. not a mortgage, the results are staggering I think.
Class notes: https://docs.google.com/spreadsheets/d/11CXEtzisElFV7gRLRb2Obar8qeJBfIbrCV5tp6q_pmU/edit#gid=936146019 https://docs.google.com/document/d/12HTV5juYmu9eW80ItN-itQk0OhFFnvkNvR7ohAoOQjs/edit