I have finished the reading on the story of Nero Tulip. It mostly strike me is that this sentence as follows:
In addition,they end up drowning in randomness ;work ethics,Nero believes,draw people to focus on noise rather than the signal.
This sentence remind me of the difference between knowledge and information told by XiaoLai Li on his columns <the road to the finance free>.
As we mention now,this is a time of knowledge outburs, the truly outbust is not knowledge but garbage.
Just as said in the book of <poor Charlie's Almanack>. On investing,this two book have many ideas in common. As follow:
There is another reason why Nero is not as rich as others in his situation .his skepticism does not allow him to invest any of his own funds outside of treasure bonds.
He therefore missed out on the great bull market. The reason he offers is that it could have turned out to be a bear market and a trip.
Nero harbors a deep suspicion that the stock market is some form of an investment scam and can not bring himself to own a stock. The difference with people around him who were enriched by the stock market was that he was cash-flow rich,but his assets did not inflate at all along with the rest of the world(his treasury bonds hardly changed in value). He contrasts himself with on of those start-up technology companies that were massively cash-flow negative,but for which the girds developed some infatuation.
This allowed the owners to become rich from their stock valuation,and thus dependent on the randomness of the market's election of the winner.
This sentence is very fimiliar to me.because I have heard it.
