What I Have Been Reading – February 2020

How To Get Wealthy

My simple secret of getting rich that is available to all is – start early, spend less than you earn, and invest that surplus well for the long run.




$1 million invested in S&P 500 in 1942 has become $5.3 billion in 2019.   

A 1% annual charge would have reduced the return to half; $2.65 billion. 

You might have been robbed of most of the returns if the charges are 2 and 20.   

Buffett letter.


Debt By Generation

About 41% of eligible Gen Zers, defined as those born in the mid-1990s or later, had a credit card last year, compared to 34% of Millennials reaching the same age in 2012, according to TransUnion. The average 24-year-old last year, for example, owed about$2,000on their card, about a third more than Millennials at that age in 2012.



Apple Watch Vs Swiss Watches

The Apple Watch outsold the entire Swiss watch industry in 2019, according to a new report.
Market research firm Strategy Analytics estimates that Apple shipped 30.7 million units worldwide of its smartwatch last year, compared to 21.1 million for all Swiss watch brands combined.



Money And Fear

I wasn’t driven by some magnificent search for purpose, or the nagging desire to provide value to society. I was driven by something far less chivalrous:

My intense, terrifying fear of being homeless.




According to Chick-fil-A, 60k people apply to be operators every year — and only ~80 are selected. With a 0.13% acceptance rate, it’s harder to become a Chick-fil-A franchisee than it is to get into Stanford University (4.8%) or get a job at Google (0.23%).



Wealth And Friendship

Wealthier people may prefer to socialise with people on similar incomes. Logistically, it’s easier, as they can afford to do the same things. “We like to be in tribes of people like us,” says Alex Holder, a journalist specialising in money issues and the author of Open Up: Why Talking About Money Will Change Your Life. “There’s so much comfort in being in places with people who like the same clothes and read the same newspapers and eat in the same restaurants.” This is the case for James, who recently attended a concert in Montreal. As the tickets cost £90, James didn’t bother inviting his lower-earning friends – he knew they couldn’t afford it. “I don’t want to only hang out with people who earn the same as me,” James says, sounding guilty. “But it’s already happening.”




Stated preference: we want leg room & airlines are cruel capitalists for not giving us more

Revealed preference: we buy the absolute cheapest fare we find and will not pay $30 more for economy plus


Future Health Crises

By 2030, nearly one in two adults will be obese, and nearly one in four will be severely obese. The estimates are thought to be particularly reliable, as the team corrected for current underestimates of weight given by individuals in national surveys. In as many as 29 states, the prevalence of obesity will exceed 50 percent, with no state having less than 35 percent of residents who are obese, they predicted.



Samsung S20 – Whats In A Name

I was wondering why Samsung rolled out Gallaxy S20 after S10. Shouldn’t it be S11?
But it all makes sense.

Apple and Samsung. iPhone and Galaxy.

Apple had an early start, but by 2015, the two were neck-in-neck. Two undisputed leaders.

For a few years, their model numbers matched.
2015. Phone 6 vs. Galaxy S6.
2016. Phone 7 vs. Galaxy S7.
2017. Phone 8 vs. Galaxy S8.

Then in 2018 Apple “cheated.” It skipped iPhone 9 and jumped right to iPhone 10 (ok, Roman 10, X).

Samsung did not expect the “jump” and rolled out Galaxy S9.
All of a sudden, psychologically, Apple is one generation ahead.

iPhone is already “10th generation”, while Galaxy is still stuck at 9.

Samsung rolls out Galaxy S10, but Apple jumps to iPhone 11. Again, one generation ahead.

And now, Samsung strikes back. Samsung uses Year 2020 as an excuse and jumps straight to Galaxy S20.

9 generations ahead of the iPhone!
Genius marketing, or just bad math?

I guess now Apple will need to come up with a totally different name for its next iPhone. iPhone 12 won’t sound advanced enough (when Samsung is already at 20). And then iPhone 13 is kind of bad luck.

I predict they’ll have an entirely different numbering system starting with the next generation.