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Deep-DivesGlobalCurated insights across markets, macros, history, and intelligenceShowing 3 of 3
Distilling high-signal intelligence into digestible insights.
Deep-DivesGlobalShowing 3 of 3
In the world of business, where numbers often guide decisions, there's a fascinating principle called Goodhart's Law. Coined by British economist [Charles Goodhart](https://en.wikipedia.org/wiki/Charles_Goodhart), this law states: *"When a measure becomes a target, it ceases to be a good measure."* **Key Takeaways** - **Goodhart's Law** warns of distorted metrics when tied to goals: It states, "When a measure…
> "mental models are realities that when we encounter them for the first time surprise us... but when we incorporate them into how we make decisions, we'll start getting advantages versus other humans." - **Mohnish Pabrai** [[00:01:01](https://www.youtube.com/live/Z2J_8GHcrvQ?si=GgWrl-Cfr3ZpPi9t&t=0h1m1s)] > "you take a simple idea and you take it seriously... you have to go all in and if you don't go all in, then…
In the world of business, where numbers often guide decisions, there's a fascinating principle called Goodhart's Law. Coined by British economist Charles Goodhart, this law states:
"When a measure becomes a target, it ceases to be a good measure."
Key Takeaways
"mental models are realities that when we encounter them for the first time surprise us... but when we incorporate them into how we make decisions, we'll start getting advantages versus other humans." - Mohnish Pabrai [00:01:01]
"you take a simple idea and you take it seriously... you have to go all in and if you don't go all in, then…
Jevon's Paradox is the counterintuitive idea that improvements in efficiency (in this case fuel) tend to increase, rather than decrease, overall use of that resource (in this case fuel).
In 1865, William Stanley Jevons, a British economist, observed that despite significant improvements in coal efficiency in steam engines, total coal consumption actually rose. Rather than saving fuel, efficiency made…
