Why Inversion Works
The answer comes from an ancient text called Tao Te Ching.
Dear CMQ Investors,
I just shared our latest book notes with our paid members. They cover an ancient text called Tao Te Ching. Although Tao Te Ching is not about investing, it offers several time-tested lessons that investors can apply.
Practice not-doing, and everything will fall into place. —Tao Te Ching
Academic studies show that the more you trade, the worse you do.
Legendary investor Charlie Munger says there are mathematical advantages of doing nothing.
Speaking of Charlie Munger: One of Charlie’s favorite mental tricks is inversion. I’ve personally used this mental trick over-and-over to make better decisions.
But why does inversion work so well? This quote from Tao Te Ching offers an explanation:
The long and the short, the high and the low, the loud and the soft, the before and the after—all are opposites. Each reveals the other. —Tao Te Ching
Think about that: The truth about something is revealed in the opposite. Failure teaches us about success. Losing money teaches us about making money. I could go on-and-on.
Do you want to learn more about using inversion? Listen to our 13 minute episode for all the actionable info you need.
Stream for free via Apple Podcasts or Spotify
Hope you enjoy!
Sincerely,
@ChrisFranco
P.S. The next edition of Book Notes will be about The Psychology of Money. To access these notes (and much more), become a paid member.
