What I have been reading - 13th May 2019
How Compounding works in the Stock Market: Compounding is a really hard concept for humans to understand. Ben Carlson does a great job explaining it here. The problem as Carl Richards says is that you have to go through "short-term boring" to get to "long-term exciting". Most people don't keep going long-enough to get to the exciting part.
The Munger Operating System: How to live a life that really works: This article is based on a speech that Charlie Munger gave to students at the University of Southern California's Law School. A must-read for everyone, but particularly for lawyers (be sure you get to the last two paragraphs!). My favourite quotes: "There is huge pleasure in life to be obtained from getting deserved trust", "You can progress only when you learn the method of learning", "Be reliable. Unreliability can cancel out the other virtues", "You'll be most successful where you are most intensely interested".
Young real estate flippers get their first taste of losing: Cayman property has been booming. If you think flipping houses is easy and a sure-thing, read this Bloomberg article before you get going.
Calling the shots: A nice article from Jonathan Clements that highlights how our perspective changes as we age. We move from constantly striving to get ahead, to coming to grips with our dwindling time.
Should you tell your teenager how much money you make?: Ooooh - this article is really good! It presents both sides convincingly. All personal finance is, well, personal. And this topic particularly so. Whichever side of the camp you fall on here, this article highlights the importance of having an open dialogue with your teenage children about money.
The Fruits of Friendship: I had an especially wonderful evening out with friends on Saturday celebrating the birthday's of two special people. This article came at the perfect time.