The 4 Hour Struggle

Entrepreneurial Philosophy by Matt Aaron


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What is Not Stated Publicly

Taleb talks about non-linearity and things we are unable to understand. He frequently cites the news as mostly noise.

We have a tendency to put way too much faith/value into modern news / media / information that is readily available to the public.

I believe that there is less noise in private information. Things said off the air, away from the press, mentioned in confidence. Not as much spin. Perhaps more important details that wouldn't be shared with the masses for various reasons.

In business, what does the owner of the company say where their industry is going in a private dinner? How did they negotiate with their supplier? How did they convince investors to join? What they state to the public is, generally, less valuable.

I don't pay attention to politics, but if I did, I don't really care too much about what CNN says, but I would love to know what high up gov't officials, lobbyists, and billionaires say behind closed doors.

Arguments for Passive Investing

On Minimalist Wealth

To begin, let's define Passive and Active Investing, using the S&P500 as our stock index.

Active investing is the managing of a portfolio to perform better than the S&P500. This is achieved by investing in high growth stocks while avoiding declining stocks.

Examples of active investing include trading individual stocks, day trading, options, hiring a portfolio manager, or buying an actively managed fund, as the manager of that fund is doing some combination of the above.

Passive investing is the managing of a portfolio to match the performance of the S&P500. This is done by buying a fund that is tracked to the index, meaning it mimics the performance of the S&P500.

An example of this would be buying shares of an an S&P-tracked index fund like this one.

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