Greed and Capitalism

What kind of society isn't structured on greed? The problem of social organization is how to set up an arrangement under which greed will do the least harm; capitalism is that kind of a system.
- Milton Friedman

Wednesday, November 23, 2011

Fast Thinking, Slow Returns; Slow Thinking, Fast Returns

Fast Thinking, Slow Returns; Slow Thinking, Fast Returns:

Fast Thinking, Slow Returns; Slow Thinking, Fast Returns

by Mohnish Pabrai

Our brains are in sync with the speed at which the marketis moving and totally out of sync with the speed at which abusiness is moving. It seems obvious: The market is repricing a company's stock very quickly. I can processvery quickly; therefore, I make decisions based on that. You have to learn to dramatically slow your brain, which is very hard for most people. The reality is that you should make decisions based on how that business is changing, and that's a very slow process.




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