— Bertrand Russell (link)
— Doc Eifgrig
Cognitive psychologists have named the way we learn “chunking”.
When you want to internalize and understand a new concept with multiple moving parts you break it into pieces, or “chunks.”
Most research shows we can handle about four or five chunks.
In your head, you juggle these concepts around while you think about a problem. Eventually those chunks fuse into a single idea that you understand. Now you can layer that singular “chunk” with others to form a deeper and more rewarding concept.
Now you can act in a way that feels like you’re not even thinking about it, even though you may be applying a complicated thought process.
Here’s an example that resonates with me. When you’re first learning to drive, you have to run through a checklist to back your car out of the driveway:
• Start the car.
• Put on your seatbelt.
• Check the rearview.
• Put the car in reverse.
• Start slowly.
• Turn the wheel.
And so on.
For your first few times, you think about every one of those steps. You keep the radio off or pause your conversation with your passenger while you focus on the task at hand.
Eventually though, this all becomes one thought to you: The six-step checklist blurs into a single concept: “Pull out of the driveway.” You can perform this multistep task, process multiple sensory inputs, and pilot a 3,000-pound vehicle out onto the road. Even if you’re in an unfamiliar place or in a hurry, it all happens automatically.”
— Warren Buffett
All investment is, is laying out some money now to get more money back in the future. Now, there’s two ways of looking at the getting the money back. One is from what the asset itself will produce. That’s investment. One is from what somebody else will pay you for it later on, irrespective of what the asset produces, and I call that speculation. So, if you are looking to the asset itself, you don’t care about the quote because the asset is going to produce the money for you.”
— Bill Bonner
“Products are bought with products,” not with money alone, said the great 19th-century French economist, Jean-Baptiste Say.
He was describing the real world… the win-win world. If you want something, you’ve got to give something in return. Which means you have to produce something to give – and not just a piece of paper with green ink on it.
This basic insight is at the heart of civilization (trading, sharing, cooperating… rather than stealing). And it is at the heart of progress and prosperity, too (the more you want, the more new and better products you have to come up with).
— Will Durant