Money Wisdom
3 min readDec 16, 2023
This is a list of lessons I’ve learned over time from books, confirmed by my experiences.
Macro
- When interest rates change, interest-sensitive assets (Real Estate, Small Cap, banks)get repriced accordingly.
- When the U.S. dollar is expensive, buy tech. (Gonzalez’s How to Make Money with Global Macro)
- When rates are cut, Small Cap grows the fastest.
- The U.S. holds the ultimate economic leverage over any other country.
- Deflation is not a concern for America. (Volcker’s Keeping At It, Kurzweil’s The Singularity is Near)
- Debt leads to growth in GDP (Vague’s The Paradox of Debt)
- “Since land, building, and factories produce income, so money must yield interest.” (Chancellor’s The Price of Time)
- The monetary policy can dictate whether you look smart or stupid afterward.
Investing
- Sell spinoffs immediately; they often shed less profitable segments. (e.g. Reality Income, O)
- For taxable accounts, prioritize high-growth stocks with fewer dividends. Modify infrequently. Tax-advantaged accounts allow frequent changes.
- Exercise caution when P/E > 40. (Peter Lynch’s Beat the Street)
- Tech grows exponentially like lily pads. (Kurzweil’s The Singularity is Near. Patterson’s Chaos King)
- Be aware of things that grow exponentially in nature, like…