Even though Netflix stock has dropped during 2022, I still think Reed Hastings is a pretty smart guy.

He said that Netflix is a high performing sports team, rather than a family.

Most (loving) families do not disown their children. But companies conduct mass layoffs in bad times. Look at…

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For those who suffer from intrusive thoughts and fears, mental models, and running through the checklists in your brain to become more objective and reality & data oriented, really helps decrease anxiety generated by the mind (especially when you’re trying to ‘control’ the mind).

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Starting this list with Incentives and Opportunity costs, because Charlie Munger identifies these as superpowers.

Incentives: people respond to incentives.

Opportunity Cost: the cost of something is everything you give up to get it.

Pareto Principle: 80 percent of the outcomes are from 20 percent of the inputs.

Principal Agent Problem: Usually, the incentives of a principal are different from the incentives of an agent.

Price is where Supply and Demand meet: Supply and Demand determine prices.

Diminishing Marginal Returns: At a certain point, the returns on increasing an input will diminish.

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