The power of simple finance

A Wharton professor, who taught us valuation, once told this story of Merton Miller, who won the Nobel Prize in Economics for his work on the Miller-Modigliani theorem. At that time, our professor was a student at the University of Chicago, where Miller was also...

If you can’t explain something, don’t do it

A long time back, I was part of an online group of (supposedly) entrepreneurs and investors. About half the chatter in that group was about crypto but there was zero logic in the discussion. Some day people would exult when Bitcoin went up. On other days, they would...

Have a beginner’s mind

I once was interviewing a professional investor who invests in power plants and infrastructure. But when I asked him “What is 1 kilowatt-hour?” he had no idea. Many people swim in the shallows. They make do by talking about high-level stuff, without really...

Do what will give you peace of mind

We hear two extreme philosophies of life. One says, “Spend less, own less, and be minimalistic. The other says, “Live it up, enjoy the luxuries, and have fun.” So what should you do? While there can’t be a prescriptive answer, let me lay out a...