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Need to KnowPhD15 m+170 XP
Things every sharp person knows
The essential concepts from law, finance, psychology, science & history that serious people carry
Compound interest: the force that makes early savers wealthy and late borrowers broke. Supply and demand: the price mechanism that allocates resources without a central authority. Opportunity cost: every choice is also a rejection of every alternative. Regression to the mean: extreme outcomes are usually followed by less extreme ones. These four concepts explain more about how the world works than 90% of what's taught in school.
Key Points
- ▸Compound interest: the most powerful force in finance
- ▸Opportunity cost: the price of every decision is what you didn't choose
- ▸Regression to the mean: extreme outcomes are usually temporary
- ▸Incentives: understand incentives and you understand behavior