is the sudden collapse of asset prices after a long period of growth fuelled by increasing speculation and debt. Named after economist Hyman Minsky, the core...
The core idea
is the sudden collapse of asset prices after a long period of growth fuelled by increasing speculation and debt. Named after economist Hyman Minsky, the core...
Connected
Mental Model
Mental ModelBarbell Strategy
at extremes of safety and risk, avoid the mediocre middle.
Mental Model
Mental ModelCircle of Competence
have an edge in some domains and not others — and the boundary between the two i
Mental Model
Mental ModelDiscounted Cash Flow
equals future cash flows discounted to present value.
Mental Model
Mental ModelMargin of Safety
below intrinsic value to protect against errors and the unforeseen.
Mental Model
Mental ModelArbitrage
is profiting from a price difference for the same or equivalent asset across mar
Mental Model
Mental ModelAsymmetric Upside
upside is a payoff structure where the best-case gain is large relative to the w