Michael Burry

The Psychology of Investing in the Information Age

• Excitedly “cramming” all at once will only mean long-term memory is not attained for the content one’s prefrontal cortex so urgently consumed. Worse, that same prefrontal cortex becomes overloaded with information that cannot be properly processed. This produces cognitive fatigue, affecting the rest of your day in negative ways. Yes, cramming for one thing makes one dumber for other things.
  • <> 2-1a0c1d1 Focus on the few variables
• Measured study and deep thought and deep sleep all help one’s hippocampus neatly categorize and file the information in your cerebral cortex for long-term retrieval and use.
  • <> RUL3 - Ask at night how what you’ve learned that day fits into your web of ideas, and search for overlaps and contradictions. Most people do not do this.
• The individual investor should consider how much he/she really understands about the business behind the investment.
• As if having more information available to us has made us less analytical, less thoughtful, and yet more opinionated.
  • the more doesn’t necessarily mean better <> 2-1a0c1d2 Less is often more
• Many recall the pre-Internet age and suggest people are less knowledgeable than before the boom.
  • don’t outsource too much?revisit
    • 2-1c1a1 Companies will outsource everything that isn’t their value proposition. To build successful B2B company, simply be the outsource. <> 5-1b1b2b Don’t try to be the best. Be the only.
    • 2-1c2b Forced vertical integration made Tesla intimately familiar with the complex supply chain required to build a car. Good counter-argument to outsourcing everything.
    • 4-1a4b8c When you outsource your thinking, you can reap the benefits of multitasking without any downsides.
      • only if you do the work at meta-levelrevisit