One thing I find interesting in mental models is the intersectionality of fundamental theories and principles of different subjects. For example, there’s something called ‘Variance Drain’ in Geometry, which is the interruption of constant increase above a certain level of threshold. This theory applies to investment, where it “operates under the theory that between two portfolios with the same beginning and same average return, the one with the greater variance will have a lower compound return and less-ending wealth.”
A SHORT NOTE ON CONSISTENCY
A SHORT NOTE ON CONSISTENCY
A SHORT NOTE ON CONSISTENCY
One thing I find interesting in mental models is the intersectionality of fundamental theories and principles of different subjects. For example, there’s something called ‘Variance Drain’ in Geometry, which is the interruption of constant increase above a certain level of threshold. This theory applies to investment, where it “operates under the theory that between two portfolios with the same beginning and same average return, the one with the greater variance will have a lower compound return and less-ending wealth.”