Updates

  1. Person pages list letters, writing, profiles and links as sortable tables with filters, and show each person's companies as links; Fund letters show each letter's description in its own column.
  2. Experts show a checked job title and a short description of each person; 30 more people have photographs.
  3. Every company, fund, university and publication the experts work for has a page listing the people there.
  4. Fund letters show each letter's thesis and filter by it; 225 person pages list the essays, columns and newsletter issues the person wrote.
  5. Person pages list every essay and newsletter issue a person wrote, and their own books as a table in List view.
  6. Recommends shows the five largest kinds of book and the rest under More; browse pictures load sooner.
  7. Podcasts and talks link the original episode, filter by Audio and video or Press, and list each publisher once.
  8. Pages are wider, Recommends has List and Grid, and a filter clicked again turns off.
  9. Book cards sit in a ruled grid with Open Library and Goodreads links and each book's one-line note.
  10. Funds is now Investors; each investor's styles are buttons that filter the table.
  11. Podcasts and talks on a person's page filter by year and publisher and show as a list or a grid of pictures.
  12. Quotes show only people's own words: 472 summaries written by list sites are gone.
  13. Country pages open from Browse again, and every link on the shelf lands on a page.
  14. Subject and person pages show their sections as tabs, and each book appears once on a person's page.
  15. Book cards show the quote, who said it and the source; grids show five cards to a row.
  16. On a phone, a menu holds the sections, search, Updates, Feedback and dark mode.
  17. Feedback takes a screenshot of the page with no browser prompt, opens a screenshot full size when you click it, and clears itself once sent.
  18. Book cards are centred, search names the topic each book sits in, and any text cut short shows whole on hover.
  19. Search groups its results by kind: people, companies, geographies, subjects, topics, books, funds, fund letters and papers.
  20. The Books table lists who recommended each book by name, and the browser tab names the section you are in.
  21. Feedback can take a screenshot of the page, or one you paste or choose, and opens in the corner beside Updates.
  22. Each rail button reopens its section where you left it, and Browse, Table and People show on every book and subject page.
  23. Filters grey out choices that hold nothing instead of hiding them, and Books › People filters by authors or recommenders.
  24. Feedback takes a subject line and up to three screenshots.
  25. Biographies are grouped by the person they are about: 41 new pages, from Abraham Lincoln to Lee Kuan Yew.
  26. Sport splits into 23 sports, and Religion into one topic per faith.
  27. Book lists show as cards: the cover, one recommendation quote and every recommender by name.
  28. Seventeen subjects that had two or three pages under different names now have one page each.
  29. Every page lists its Experts as authors and recommenders, with a link to them on the Experts tab.
  30. Economics, Financial history, Financial panics and Accounting are subjects of their own, with one page per financial crisis.
  31. Book, person and subject pages open inside the app, so the tabs stay in view.
  32. 996 more book covers, and photographs or logos for 227 more people and companies.
  33. Books › Browse shows every subject as cards, and the rail holds Fund letters, Papers, Experts, Books and Funds.
  34. Every topic over 150 books splits into narrower topics, each with a page of its own.

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Loss Aversion and Prospect Theory

Mental models

People evaluate outcomes as gains and losses from a reference point, and losses weigh roughly twice as heavily as equal gains. The signature investor symptom is selling winners early while nursing losers so the paper loss never becomes real. The defence is to set exit rules before entry and to judge every holding on forward prospects rather than cost basis.

Books 7Experts 4Recommenders 49Resources 3

Start here

  1. Predictably IrrationalDan Ariely, 2008
  2. MisbehavingRichard H. Thaler, 2015
  3. Thinking, Fast and SlowDaniel Kahneman, 2011
Thinking, Fast and SlowThinking, Fast and Slow
T1 Thinking, Fast and Slow
Daniel Kahneman · 2011
Open LibraryGoodreads

Kahneman's synthesis of behavioral economics is the cognitive science underpinning every negotiation tactic. Anchoring, loss aversion, framing effects, and the planning fallacy — understanding why these biases operate, not just that they exist, makes you harder to exploit and more honest about your own irrationality.

“…books I've recommended, highlighted to death, or forced on friends.” — Andrew Wilkinson

Source: Andrew Wilkinson's Bookshelf, neverenough.com

Recommended by: Andrew Wilkinson, Charles de Vaulx and 32 others

Inefficient MarketsInefficient Markets
T2 Inefficient Markets
Andrei Shleifer · 2000
Open LibraryGoodreads

“In his excellent book, Inefficient Markets, Andrei Shleifer describes the three arguments that comprise the theoretical foundation for market efficiency.” — Michael Mauboussin

Source: Capital Ideas Revisited (Legg Mason Capital Management)

Recommended by: Michael Mauboussin

The Paradox of ChoiceThe Paradox of Choice
T2 The Paradox of Choice
Barry Schwartz · 2004
Open LibraryGoodreads

Beyond a point, more options make people less likely to choose and less satisfied.

“It is almost ten years since Barry Schwartz published his popular psychology book "The Paradox of Choice".” — Nick Sleep

Source: Nomad Investment Partnership, Annual Letter for the period ended December 31st, 2013, p. 216

Recommended by: Nat Eliason, Nick Sleep and 1 other

NudgeNudge
T2 Nudge
Richard H. Thaler, Cass R. Sunstein · 2008
Open LibraryGoodreads

Nudge: The Final Edition published 2021.

Recommended by: Tristan Harris

Predictably IrrationalPredictably Irrational
T2 Predictably Irrational
Dan Ariely · 2008
Open LibraryGoodreads

Experiments showing that people depart from rational choice in repeatable ways.

Recommended by: Mohnish Pabrai, Alfred Lin, Anna Cheng and 6 others

MisbehavingMisbehaving
T2 Misbehaving
Richard H. Thaler · 2015
Open LibraryGoodreads

How behavioural economics was built against economists who assumed rational agents.

“He opens his new book, Misbehaving, with Vilfredo Pareto's assertion” — Howard Marks

Source: Oaktree memo 'On the Couch'

Recommended by: Howard Marks, Peter Mallouk, Tyler Cowen

The Undoing ProjectThe Undoing Project
T2 The Undoing Project
Michael Lewis · 2016
Open LibraryGoodreads

Michael Lewis's account of the Kahneman-Tversky collaboration works as intellectual biography and as a second path through the research for readers who find academic writing slow. The friendship and its eventual fracture clarifies how two very different minds produced work that neither could have done alone.

Recommended by: Andrew Wilkinson, Mohnish Pabrai, Ray Dalio and 6 others

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