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1/

Get a cup of coffee.

In this thread, I'll help you understand the basics of probability distributions and random variables.

Get a cup of coffee.

In this thread, I'll help you understand the basics of probability distributions and random variables.

2/

Imagine that you run an insurance company.

Every year, you write a policy that insures the city of San Francisco against an earthquake.

Imagine that you run an insurance company.

Every year, you write a policy that insures the city of San Francisco against an earthquake.

3/

Every year, on Jan 1'st, the city pays you an "insurance premium". You can invest this premium however you like.

If an earthquake hits, you need to pay the city $1B on Dec 31'st.

If no earthquake hits, you get to keep the premium -- and any returns you made by investing it.

Every year, on Jan 1'st, the city pays you an "insurance premium". You can invest this premium however you like.

If an earthquake hits, you need to pay the city $1B on Dec 31'st.

If no earthquake hits, you get to keep the premium -- and any returns you made by investing it.

1/

I just listened to this wonderful episode of “Coffee With The Greats” — a conversation between @milesfisher, his dad, and Ajay Banga (the CEO of MasterCard, @Mastercard).

It’s packed with so many interesting nuggets — the threadaholic in me can’t resist summarizing them!

I just listened to this wonderful episode of “Coffee With The Greats” — a conversation between @milesfisher, his dad, and Ajay Banga (the CEO of MasterCard, @Mastercard).

It’s packed with so many interesting nuggets — the threadaholic in me can’t resist summarizing them!

2/

Key things Ajay learned from his parents.

From his mom: Constantly educate yourself and keep improving yourself so you can help others more.

From his dad: Connect with everyone. Learn from everyone. Find the humanity in everyone.

Key things Ajay learned from his parents.

From his mom: Constantly educate yourself and keep improving yourself so you can help others more.

From his dad: Connect with everyone. Learn from everyone. Find the humanity in everyone.

3/

It’s super important to have “alone time” to think.

Ajay tries to set aside the first 45 mins of each day (8:00am to 8:45am) — to read, think, envision the future, etc.

And he tries to not have back to back meetings. Gaps between meetings help digest information better.

It’s super important to have “alone time” to think.

Ajay tries to set aside the first 45 mins of each day (8:00am to 8:45am) — to read, think, envision the future, etc.

And he tries to not have back to back meetings. Gaps between meetings help digest information better.

1/

Get a cup of coffee.

In this thread, I'll help you understand the basics of game theory and Nash Equilibria.

This can help you systematically analyze many economics and business situations.

Get a cup of coffee.

In this thread, I'll help you understand the basics of game theory and Nash Equilibria.

This can help you systematically analyze many economics and business situations.

2/

Since this is a magical topic, we'll set this thread in the Harry Potter universe.

Imagine that you're Ollivander, the wand maker.

You source magical raw materials and make wands out of them. You sell these wands to witches and wizards out of a shop located in Diagon Alley.

Since this is a magical topic, we'll set this thread in the Harry Potter universe.

Imagine that you're Ollivander, the wand maker.

You source magical raw materials and make wands out of them. You sell these wands to witches and wizards out of a shop located in Diagon Alley.

3/

The wand business is highly seasonal.

95% of your sales happen in the two weeks before Hogwarts reopens each year.

Most witches and wizards buy a wand just before their first year at Hogwarts. And they use that wand their whole lives -- so there's not much repeat business.

The wand business is highly seasonal.

95% of your sales happen in the two weeks before Hogwarts reopens each year.

Most witches and wizards buy a wand just before their first year at Hogwarts. And they use that wand their whole lives -- so there's not much repeat business.

1/

Get a cup of coffee.

In this thread, I'll help you understand the concept of "Look Through Earnings".

Get a cup of coffee.

In this thread, I'll help you understand the concept of "Look Through Earnings".

2/

Imagine that you're Mack, the truck driver.

You work, of course, for Lightning McQueen -- the world famous race car.

Your job is to transport Mr. McQueen across the country, to wherever his next race happens to be.

Imagine that you're Mack, the truck driver.

You work, of course, for Lightning McQueen -- the world famous race car.

Your job is to transport Mr. McQueen across the country, to wherever his next race happens to be.

3/

You work hard, and you take pride in your work.

After all, it is because of your efforts that Mr. McQueen always reaches his race venue safely, in time, well rested, and ready to win.

You work hard, and you take pride in your work.

After all, it is because of your efforts that Mr. McQueen always reaches his race venue safely, in time, well rested, and ready to win.

1/

Yesterday, I called out someone on Twitter.

This guy had a blog.

On this blog, he was plagiarizing my threads — and also posts from top financial writers like @morganhousel and @dollarsanddata.

Yesterday, I called out someone on Twitter.

This guy had a blog.

On this blog, he was plagiarizing my threads — and also posts from top financial writers like @morganhousel and @dollarsanddata.

2/

After seeing my tweet, many of you came together and voiced your distaste for this kind of behavior.

Facing all this pressure, this person has since taken down the posts he plagiarized, and also apologized on his blog.

He also apologized to me via DM.

After seeing my tweet, many of you came together and voiced your distaste for this kind of behavior.

Facing all this pressure, this person has since taken down the posts he plagiarized, and also apologized on his blog.

He also apologized to me via DM.

3/

This person clearly made a mistake.

But after getting caught, he’s tried to make amends and do the right thing.

Plus, being called out on Twitter by so many people can’t have been much fun for him.

So, I’m inclined to let this matter rest.

This person clearly made a mistake.

But after getting caught, he’s tried to make amends and do the right thing.

Plus, being called out on Twitter by so many people can’t have been much fun for him.

So, I’m inclined to let this matter rest.

1/

Get a cup of coffee.

In this thread, I'll help you understand geometric sequences.

Geometric sequences are the basis for *so* many financial calculations -- from DCFs to mortgages.

And the math behind them is not very complicated. So I think it makes sense to master it.

Get a cup of coffee.

In this thread, I'll help you understand geometric sequences.

Geometric sequences are the basis for *so* many financial calculations -- from DCFs to mortgages.

And the math behind them is not very complicated. So I think it makes sense to master it.

2/

First things first. What is a geometric sequence?

In simple terms, it's just a list of numbers.

But not just any numbers.

No, these numbers have a very special property: they grow (or shrink) *exponentially*.

First things first. What is a geometric sequence?

In simple terms, it's just a list of numbers.

But not just any numbers.

No, these numbers have a very special property: they grow (or shrink) *exponentially*.

3/

Here's an example.

Suppose your 2020 salary is $100K. And you get a 5% raise every year.

So, in 2021, your salary will be $100K * 1.05 = $105K.

And in 2022, your salary will be $105K * 1.05 = $110.25K.

And so on.

Here's an example.

Suppose your 2020 salary is $100K. And you get a 5% raise every year.

So, in 2021, your salary will be $100K * 1.05 = $105K.

And in 2022, your salary will be $105K * 1.05 = $110.25K.

And so on.