Mental Models discussed in this podcast:

• Second-Order Effects
• Passive vs Active Investing
• Standing on the Shoulders of Giants

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Show Outline

The full show notes for this episode are available at https://www.diyinvesting.org/Episode122

Key Observations

• I have seen many writers, presentations, and discussions around this idea that YOU are NOT the next Warren Buffett, therefore...X
  • "Don't concentrate"
  • "Don't buy individual stocks"
  • "Buy Index Funds"
  • "You won't outperform...etc..."
• What is the impact of this?
• Is it true?
• How many future Warren Buffett level investors will never arise because we've convinced them it is impossible?
  • Imagine if we treated scientists like this.
  • "You aren't the next Einstein (or Bezos or Zuckerberg)"
    • The lesson: Don't even bother trying
  • How many future inventions would we lose out on?

Summary:

Are you the next Warren Buffett? This question discourages potential investors from attempting to outperform. I discuss the second-order effects this has on the investing landscape and your personal financial situation.