Gaming Nostalgia: My Journey Through Classic Video Games

I used to enjoy playing computer games so much that I would occasionally become addicted for a brief period, only to grow bored and move on to the next one. In the interim, more serious matters like studies, jobs, and exams often provided the necessary distractions to overcome my gaming addiction. There was a time in my life when I aspired to design and build computer games, but unfortunately, that dream never came to fruition. Recently, I decided to introspect and reminisce about the games I've played, leading me to compile the following list. These are the games I spent a significant amount of time playing, and I managed to complete most of them.

Racing Games:

Road Rash: This motorcycle combat racing game series allowed players to engage in illegal street races, battling opponents with melee weapons while racing to the finish line.

This was the first desktop game I ever played, courtesy of my friend Keerthi. It was on his desktop, the first one in our hostel among our batch. We used to take turns playing it, and I still remember Sheriff Rhonda, who used to chase us. The most fun part was kicking other riders and hitting them while racing.

Need for Speed (NFS): Known for its high-speed races, vehicle customization, and engaging storylines. 

This game series was an upgrade from Road Rash for us, with better graphics and maps. The best part was the various camera angles and the slow-motion view you'd get when you crashed.

Asphalt: This racing game series was characterized by fast-paced arcade-style gameplay, stunning graphics, and a wide range of cars and tracks. It's available on mobile platforms and offers various game modes.

Action-Adventure Games:

Urban Chaos: In this third-person action-adventure game, players assumed the role of a police officer in a crime-infested city, engaging in combat, solving crimes, and restoring order. 

We often played this game as a group, with most of us watching while one person played. Meghamsh and Keerthi were usually the ones playing, and they were incredibly accurate in shooting and quick in their reactions. The rest of us would cheer and offer ideas.

Tomb Raider: This iconic action-adventure series featured Lara Croft, an adventurer exploring ancient tombs and solving puzzles. 

I was the only one addicted to this game to the extent that I'd visit the campus computer lab just to check online walkthroughs shared by players from around the world.

Max Payne: Known for its dark narrative and "bullet time" gameplay mechanic, which allowed players to slow down time during gunfights, this third-person shooter provided intense adrenaline-pumping action. 

I still remember the iconic side jump and shooting on the fly.

Role-Playing Games (RPGs):

Diablo: An action role-playing hack-and-slash game set in a dark fantasy world. Players traversed dungeons, battled monsters, and collected loot to improve their characters. 

My friends from IIT still make fun of me for playing this game for 30 hours straight, even falling asleep while playing it. Thanks to Bhargav, it was his system on which I played this game.

Real-Time Strategy (RTS) Games:

Age of Empires: This classic real-time strategy game series allowed players to build and manage civilizations from different historical periods, involving resource management, military strategy, and diplomacy. 

I introduced this game to my colleagues in TCS when I was in Saudi, and it became our savior from the boredom of living there. We often played in multiplayer mode, with Sridhar Talatam and me teaming up to crush our opponents with cunning strategies.

Caesar: A city-building strategy game set in ancient Rome, where players acted as Roman governors building and managing cities. The game threw curveballs when you least expected them.

Simulation Games:

FarmVille: This popular social simulation and farming game allowed players to cultivate and manage virtual farms. It gained widespread popularity on social media platforms.

Open-World and Sandbox Games:

Grand Theft Auto (GTA): An open-world action-adventure game known for its freedom of gameplay. Players could explore expansive cities, engage in missions, and often indulge in illegal activities. 

This game needs no introduction; it's a fantasy game where you can break the law and experience the life of a gangster.

First-Person Shooter (FPS) Games:

Half-Life: A critically acclaimed first-person shooter known for its immersive storytelling and innovative gameplay, which involved combat against various alien creatures.

Rainbow Six: A tactical shooter game emphasizing team-based strategies and counter-terrorism operations. 

This game sometimes had so many keyboard controls that it required 2-3 people to help the player. I still remember the incident when Kalyan (Pichuk) was playing a level where the objective was to kill terrorists with hostages. If the terrorists suspected your presence, they'd trigger an alarm, resulting in the hostages' deaths. After multiple attempts, Pichuk almost reached the spot, and the next moment, I casually mentioned, "What if the terrorists realize you're there?" That was all it took—the terrorists in the game heard me, and the alarm went off. Everyone in the room yelled at me. I was infamous for my iron tongue that whenever I said something bad, for sure happened :D

Delta Force: A first-person shooter game series focusing on military operations and strategic gameplay, often featuring large maps and emphasizing stealth and precision.

Counter-Strike: A popular first-person shooter game known for its competitive multiplayer gameplay, involving terrorist and counter-terrorist teams in objective-based missions.

Battle Royale Games:

PlayerUnknown's Battlegrounds (PUBG): A popular battle royale game where players competed to be the last one standing on an ever-shrinking map. It involved intense combat and strategic gameplay.

Unfortunately, this game is now banned. I used to play it on my Poco-F1 phone, which got stolen on the Mumbai local train.

Even as I drafted this post, I relived those moments when I played these games. In the future, I am determined to design a game and hopefully release it to mainstream audiences. As a player, I know what elements give me a rush and keep me engaged in a game. Do let me know of any ideas and any of your experiences with the games I have shared above.

Great Space Shirt Hunt

My son has this habit of asking me to tell a story every time he has to go to sleep and always demands for a new one. The following story is an impromptu extempore that I just made up on the fly. It goes like this..

One fine day, in the vast expanse of the solar system, Mercury, the planet known for its scorching heat, realized something was terribly wrong. It couldn't find its favorite blue shirt! You see, Mercury had a quirky habit of hanging its shirts out to dry in space.

Frantic, Mercury zoomed over to Venus and exclaimed, "Oh dear, my lovely blue shirt is missing! Have you seen it?"

Venus, with its characteristic thick clouds, looked puzzled and said, "Oh, I'm sorry, Mercury, I have no idea where your shirt might be."

They both decided to pay a visit to Earth, the friendly blue planet known for its oceans and helpful inhabitants. Earth suggested, "Hmm, maybe the mischievous Moon took it. Why don't you go ask?"

However, by the time they reached Earth's orbit, Moon had already gone to school. Moon's classmates were Ganymede, Titan, Miranda, Triton, Phobos, Europa, and IO. And who was the headmaster? None other than the mighty Jupiter! They approached Jupiter with worried expressions.

"Hello, Headmaster Jupiter," they chimed nervously, "we're looking for our dear friend Moon and their classmates. Have you seen them?"

Jupiter, with its swirling storms, looked down and replied, "Oh, all the school kids, including Moon and their classmates, are on a field trip to a shopping mall with their teacher, Saturn."

Off they went to the mall, passing through an asteroid security checkpoint. Inside, they found all the moons of the solar system, having a blast at the mall. They approached Saturn and asked about Moon and their classmates.

Saturn called out, "Moon, Ganymede, Titan, Miranda, Triton, Phobos, Europa, IO, your friends are here."

Finally, Mercury found Moon and asked, "Moon, where's my favorite blue shirt?"

Moon, looking guilty, confessed, "Well, I liked your shirt so much that I wanted to find a similar one. We're at the shirt store!"

They hurried to the shirt store and, to their dismay, found a massive pile of blue shirts. Mercury's shirt, a gift from Neptune, was lost among them.

In a panic, they called upon Uranus, the store manager, to help identify the shirt. Even Mercury couldn't remember exactly how his shirt looked!

Just then, Neptune happened to pass by. Uranus asked Neptune where he bought the shirt, and Neptune, trying to stifle laughter, said, "It's from this very store!"

After a collective facepalm moment, they all erupted into laughter, realizing the comical twist of fate.

And so, with Neptune's keen eye, they found Mercury's shirt, and all was well in the solar system once more. They decided to commemorate this hilarious adventure with a group photo, a reminder of the day the planets and their delightful moon classmates set out on a mission of fashion frenzy, bringing them even closer as a cosmic family.

Fear of Interviews - A few strategies to overcome

 

You've got an interview scheduled, and from the moment you receive that notification, the idea of being interviewed becomes a constant presence in your mind. Whenever the HR personnel ask for a suitable time, we often find ourselves postponing it to the next day or even later, all in the hope of securing ample time to prepare. However, during this delay, numerous other tasks tend to take precedence, causing us to miss out on preparation time. Consequently, we end up dedicating the entire day before the interview to frantic last-minute preparations, often regretting why we didn't utilize our time wisely and even wishing for a postponement. Some individuals may go to the extent of contacting HR and requesting a postponement, citing reasons such as a sudden medical emergency.

If the thought of facing an interview makes you nervous, rest assured you're not alone. Studies reveal that a staggering 93% of people experience pre-interview jitters.

Now, let's delve into the reasons behind this nervousness. Why do you think interview anxiety is so prevalent? Feel free to share your thoughts in the comments below.

In my view, there are several contributing factors, though not in any particular order:

The Significance of the Job: The job might be of paramount importance to you, and the prospect of securing it is crucial.

The Uncertainty of Questions: Interviews often resemble exams where you encounter questions you could never have anticipated.

Constant Evaluation: The feeling of being under constant scrutiny, from your speech and presentation to your behavior, can be intimidating.

Lack of Confidence or Self-Doubt: This applies to even the top performers in their fields because everyone has their own unique level of self-assurance.

So, how do you handle this situation? Here are some strategies:

Anticipate Questions: While you can't prepare for every possible question, familiarize yourself with common ones like "Tell me about yourself," "What are your strengths/weaknesses," "Why this job?" and "Why are you leaving your current job?"

Comprehensive Resume Review: Understand that your resume sets the context, and interviewers often base their questions on it. Prepare to elaborate on each point in detail and avoid exaggerating your achievements.

Company and Role Research: Gain insights into the job you're applying for and think about how you can contribute to the company in that role. Research the company to show your genuine interest and prepare questions for the interviewer.

Know Your Interviewer: If possible, research the person who will be interviewing you by checking their LinkedIn profile, projects, and interests. Find any commonalities and use this information to your advantage during the interview.

Visualization: Imagine yourself in the interview, anticipating questions and providing answers as if it were the real thing. Familiarize yourself with the interviewer's photo to create a more realistic scenario.

Active Listening: During the interview, actively listen to the interviewer's remarks and respond accordingly. Connect with relevant points to engage in meaningful conversations.

Once, during an interview, the interviewer asked me where I was from, and I replied, "Hyderabad." The interviewer then mentioned that they had been in Hyderabad in the year 2000 for a few months. Now, at this juncture, I could have simply acknowledged this with a casual "Okay" or "I see." However, I decided to engage further by saying, "Wow, that was the year when I took my IIT JEE exam, and it's a milestone year in my life." This led to a more dynamic and engaging conversation, steering it towards discussing my experiences and achievements related to that period. The key takeaway here is that active listening involves not only hearing but also responding and connecting with relevant points. It can turn a simple question into a meaningful conversation.

Introspection: Get to know yourself thoroughly by documenting important life events, achievements, failures, and significant incidents. This helps you identify your strengths, weaknesses, and anecdotes to share when asked questions.

Remember that practice makes perfect. Consider conducting mock interviews with friends or career coaches to refine your answers and receive valuable feedback.

I hope these insights, drawn from my personal experience of conducting(1000+) and participating(100+) in numerous interviews, prove helpful. If you need further guidance or have any questions, please feel free to leave a comment below. I'm here to assist you.

Interstellar Dreams

As a child, I often found myself pondering the origins of the universe and what it encompasses. However, my understanding was limited to the information provided in my school books, leaving these questions unanswered and lingering in my mind.

In today's digital age, the availability of information at our fingertips has significantly broadened knowledge horizons. Even kids now have access to a wealth of information, surpassing what most adults had during their childhood.

Living in India, we are fortunate to have ISRO, an aspirational organization that continually pushes the boundaries of space research. Their remarkable achievements, particularly highlighted by Chandrayaan-3, have sparked a newfound interest in space exploration among my children. Despite my concerns about screen time, I must admit that their passion for space is undeniable, often immersing themselves in space-related animation videos on YouTube.For me, this is a liberating experience, as the unaddressed questions from my own childhood are now finding resolution through my children's curiosity and exploration.

Recently, I recorded an audio clip of my 3-year-old enthusiastically singing a catchy space-related song he picked up from YouTube. It warmed my heart to see how much he has absorbed and how effortlessly he recites the names of celestial bodies and other cosmic wonders.

Here's a glimpse of what my kids have learned and are fascinated by:Dwarf planets like Ceres, Eris, and Makemake.Moons such as Titan and Europa.Stars like Arcturus, Antares, Vega, and UY Scuti.Constellations like Bootes and Sleeping Beauty.Nebulae like Cat's Eye and Horsehead.

It's incredible to witness their enthusiasm for space exploration at such a young age. It's a testament to the power of accessible knowledge and the wonder of the cosmos that captivates us all.

For the interested ones I am giving a brief description of each those celestial objects.

Dwarf Planets:

Ceres: Ceres is the largest object in the asteroid belt between Mars and Jupiter. It is considered a dwarf planet and was the first dwarf planet to be visited by a spacecraft, NASA's Dawn mission. Ceres is unique because it may have water ice beneath its surface and possibly even a subsurface ocean.

Eris: Eris is one of the most massive dwarf planets in our solar system and is located in the Kuiper Belt, a region beyond Neptune. It is known for its role in the reclassification of Pluto from a planet to a dwarf planet. Eris has a highly elliptical orbit and is quite distant from the Sun.

Makemake: Makemake is another dwarf planet in the Kuiper Belt. It is known for its reddish appearance and is one of the brightest and largest objects in the region. Like Pluto and Eris, Makemake has a relatively distant and eccentric orbit.

Moons:

Titan: Titan is Saturn's largest moon and the second-largest moon in the solar system. It is known for its thick atmosphere and is the only moon with a significant atmosphere. Titan's surface is covered in lakes and rivers of liquid methane and ethane, making it a fascinating destination for future exploration.

Europa: Europa is one of Jupiter's Galilean moons and is known for its icy surface and subsurface ocean. It is considered one of the best candidates for finding extraterrestrial life in our solar system due to the potential habitable conditions beneath its icy crust.

Stars:

Arcturus: Arcturus is a bright orange giant star located in the constellation Boötes. It is one of the brightest stars in the northern hemisphere's night sky and is relatively close to Earth in astronomical terms.

Antares: Antares is a red supergiant star located in the heart of the Scorpius constellation. It is one of the largest known stars in the Milky Way and is easily visible due to its reddish appearance.

Vega: Vega is a prominent star in the constellation Lyra. It is one of the brightest stars in the night sky and is known for its blue-white color. Vega is also a part of the Summer Triangle, a prominent asterism.

UY Scuti: UY Scuti is a red supergiant star in the constellation Scutum. It is one of the largest known stars in the universe, with a radius that dwarfs the orbit of Earth. Despite its enormous size, it is too faint to be seen with the naked eye.

Constellations:

Boötes: Boötes is a constellation in the northern hemisphere. It is often associated with a herdsman or a plowman and contains the bright star Arcturus. It is visible during the spring and early summer months.

Sleeping Beauty (also known as Ursa Major): Ursa Major, also referred to as the Great Bear or the Big Dipper, is a well-known constellation in the northern sky. It is often recognized for its distinctive shape, which resembles a saucepan or ladle. The "Sleeping Beauty" reference might be a regional or cultural variation of its name.

Nebulae:

Cat's Eye Nebula: The Cat's Eye Nebula is a planetary nebula located in the constellation Draco. It got its name because its appearance resembles a cat's eye. This nebula is created by the ejected outer layers of a dying star.

Horsehead Nebula: The Horsehead Nebula is a dark nebula located in the Orion constellation. It is famous for its distinctive shape, which looks like the silhouette of a horse's head. It is a region of dust and gas that obscures the light from the stars behind it and is often photographed in conjunction with the nearby Flame Nebula.

About the pic: Interstellar is my favorite movie and watched it multiple times. The first time I watched it I was spellbound with the concept of Miller's planet. Miller's planet is orbiting a supermassive black hole called Gargantua, which is shown to warp space-time so magnificently that they can see its entire accretion disk, all at once. The unique way it appears in the film was derived from equations that physicist Kip Thorne generated. After passing through the wormhole, Coop's team decide to land on Dr. Miller's ocean planet, orbiting Gargantua, Due to Gargantua's massive gravitational pull, “every hour on that planet is seven years on Earth”. 

Bonus Trivia: Did you know. in the movie, on Miller planet, the soundtrack in the background. has a prominent ticking noise? And these ticks happen every 1.25 second. Each tick you hear is a whole day passing on earth.

The Unusual Billionaires

This book had been on my to-do list for quite some time, and finally, I was able to accomplish the task. Needless to say, it's a very insightful book, literally taking you back in time and allowing you to see how some of the great companies have evolved, what makes them great, and how to identify such gems (in stock market investors' parlance, the multi-baggers).

Saurabh Mukherjea discusses the success stories of eight Indian companies and their founders. Some of the unique traits of each of the companies are listed below:

Asian Paints: Seven decades of excellence

• Founders: Champaklal H. Choksey, Suryakant C. Dani, Arvind R. Vakil, and Chimanlal N. Choksi.
• Asian Paints' success lies in its strong distribution network and brand.
• The company has a focus on product innovation and customer satisfaction.
• The founders emphasized quality and operational efficiency.

I can vouch for Asian Paints as a happy customer, in the span of 10 years have painted my entire house using Asian paints. They stand out in quality, variety, and availability.

Berger Paints: 250 Years in the making

• Founder: Lewis Berger.
• Berger Paints' success is attributed to its innovation in products and processes.
• The company emphasizes customer-centricity.
• Berger Paints has a legacy of strong leadership.

Page Industries (Jockey): Jockeying from Manila to Bangalore

• Founder: Sunder Genomal
• Page Industries found success through its exclusive license to manufacture Jockey products in India.
• It followed a disciplined and focused approach to brand-building.
• The founders emphasized ethical business practices.

The first time I knew about this company was when I was exploring for good stocks in the stock market, I was shocked by the share price. I used to wonder who would buy this stock. After reading the book, I regretted what a gem this is and I missed it. I knew the brand Jockey much before the company :).

Axis Bank: Confounding the skeptics repeatedly

• Axis Bank's growth is tied to its customer-centric approach.
• The bank's founders established a culture of risk management.
• It focused on technology and customer service.

HDFC Bank (under Aditya Puri's leadership):

• HDFC Bank's success is attributed to Aditya Puri's leadership and vision.
• The bank prioritized risk management and maintaining a strong balance sheet.
• It invested in technology to enhance customer service.

I am a customer and investor in this company and have not been happy in recent times. The stock has been a laggard in the stock market, despite some good numbers. It is one of the highest-earning companies on the street. I'm hoping that some synergy benefits will yield from the recent merger with HDFC in the coming days.

Marico: From commodity trader to FMCG giant

• Founder: Harsh C. Mariwala.
• Marico's success came from its focus on the consumer and product innovation.
• The company had a strategy of entering underpenetrated markets.
• It established a culture of entrepreneurship within the organization

Titan Company:

• Founder: Xerxes Desai.
• Titan Company succeeded through innovation and diversification.
• The company's founders emphasized product quality and design.
• It adapted to changing market dynamics and consumer preferences.

I am a happy investor in this company

Astral Poly Technik: To the brink and back

• Astral Poly Technik's success is tied to its focus on product quality and innovation.
• The company invested in research and development.
• It established strong relationships with customers and distributors.

I can recommend them as a customer because they are the best in the market. The story of Astral is nothing short of a thriller. The way the company rose from the ashes like a phoenix shows the mettle of an entrepreneur and the belief in the vision, which are important for achieving success

In the book, Mukherjea explores the unique strategies, philosophies, and management approaches that set these companies apart and allowed them to achieve exceptional results in the stock market. Each company's success is attributed to a combination of factors such as visionary leadership, innovation, customer-centricity, and a focus on long-term value creation. Readers can gain deeper insights into these companies and their founders by referring to the book for a more comprehensive understanding of their unique secrets to success.

Some Mental models and principles from the book.

1. Long-Term Focus: Prioritizing long-term value creation over short-term gains is a recurring theme in the book. Successful billionaires maintain a patient approach to investing and business growth.
2. Economic Moat: The concept of an economic moat, inspired by Warren Buffett, is emphasized. Companies with a durable competitive advantage and strong barriers to entry are preferred.
3. Quality Over Quantity: Successful investors and businesses focus on high-quality assets and opportunities rather than diversifying excessively.
4. Financial Discipline: Conservative financial management, prudent capital allocation, and a focus on cash flows are crucial for long-term success.
5. Conservative Debt Management: The billionaires featured in the book tend to avoid excessive leverage and prioritize maintaining strong balance sheets.
6. Market Leadership: Many of the billionaires' businesses are market leaders, benefiting from market dominance and pricing power.
7. Founder-Centric Approach: Visionary founders play a pivotal role in shaping the companies and ensuring their continued success.
8. Corporate Governance: The book underscores the importance of good corporate governance practices in building and maintaining investor trust.
9. Sustainable Growth: Rather than chasing short-term profits, these billionaires prioritize sustainable growth and building businesses that can endure over time.
10. Value Investing: Some of the principles of value investing, such as buying undervalued stocks and focusing on intrinsic value, are evident in the book.
11. Frugality and Efficiency: The importance of running a lean and efficient operation is highlighted as a way to maximize profitability.
12. Innovation: While a long-term focus is crucial, successful billionaires also invest in innovation to stay relevant and adapt to changing market conditions.
13. Scalability: Many of the businesses discussed in the book have successfully scaled their operations, often leveraging technology and efficient processes.
14. Consumer-Centric Approach: Some billionaires prioritize understanding and catering to consumer needs and preferences to drive business growth.
15. Margin of Safety: The idea of having a margin of safety when making investments is mentioned, reducing the risk of capital loss.

Saurabh Mukherjea introduces the concept of the "Coffee Can Portfolio." This portfolio approach is derived from a historical investment practice that was inspired by the way people in the Old West used to store their valuables in a coffee can buried in the backyard. The Coffee Can Portfolio is essentially a long-term, buy-and-hold investment strategy that emphasizes simplicity, patience, and minimal intervention.

There is a website that I used to screen stocks, You may also check it out. Screener.

There is a ready-made screener, called "Coffee Can portfolio". Below is the query

• Sales growth > 10% AND
• Sales growth 10Years  > 10% AND
• Return on equity > 15% AND
• Average return on capital employed 10Years > 15% AND
• Market Capitalization > 1000

While you may get a good list of stocks when you run that query please note there is no guarantee that each of those stocks is good. You will need to do a thorough analysis and there are many other metrics one needs to look into before deciding on investing in a stock.

Disclaimer: This post is not a recommendation to buy any stocks. Please do your own research before buying any stock.

Bonus Trivia: There is a term in stock market fraternity for the blue chip stocks like those mentioned in the book. Its called 'BAAP' stocks. BAAP stands for Buy At Any Price.

Psychology of Money

This is one of my favorite books, and I recommend it to everyone I know, urging them to read it at least once in a lifetime. I enjoyed reading it so much that I couldn't put the book down and finished it in record time. Allow me to summarize this book here in the hope that it may also influence some of you to read it.

I was so much inspired by this book that I am following Morgan Housel on Twitter and I keep retweeting the learning from the book in my Twitter feed.

The book explores the complex relationship between human psychology and financial decision-making. It's structured around key principles and anecdotes that shed light on the various ways people approach money and wealth. Lets get into some key learning from the book.

The Importance of Behavior: Can't emphasize more that the most critical factor in financial success is not intelligence or financial knowledge, but behavior. Understanding one's own psychology and behavioral biases is crucial for making sound financial decisions.

The Power of Compounding: Compounding has an extraordinary impact over time. Small, consistent investments can grow significantly when given time to compound. Warren Buffett is a living example, who became a billionaire through the power of compounding.

Here, I am quoting something from 'Atomic Habits' that is relevant and exemplifies the concept of compounding: 'If you get one percent better each day for one year, you'll end up thirty-seven times better by the time you're done.' This is why small choices don't make much of a difference at the time but add up over the long term. - James Clear

Risk and Uncertainty: While risk can be quantified and managed, uncertainty is unpredictable. People often underestimate the role of uncertainty in financial markets and make poor decisions as a result.

Housel also uses the story of Alfred Winslow Jones, who is credited with creating the first hedge fund, to explain the concept of risk-adjusted returns and the benefits of diversification.

The Importance of Saving: The book stresses the significance of saving money, even if it's a small amount. Housel cites the story of Ronald Read, a janitor and gas station attendant who amassed a multi-million dollar fortune through consistent saving and investing.

The Role of Luck: While many people don't believe in luck, Housel argues that luck plays a significant role in financial success and that many successful individuals owe part of their prosperity to luck. Recognizing this can help people avoid overconfidence and make better decisions

I believe in GOD, that helps me to be more grounded. Housel shares the story of Richard Fuscone, a millionaire who went bankrupt because he borrowed heavily to invest in risky ventures. This illustrates the dangers of excessive leverage and overconfidence.

The Influence of Herd Behavior: Housel discusses how herd behavior and the fear of missing out can lead to poor investment decisions. He uses historical examples, such as the dot-com bubble and the housing market crash, to illustrate the dangers of following the crowd. 

This is something I feel is the strong reason why a lot of fin-fluencers fleece on gullible people. These people always create a sense of urgency amongst people and they lure people into subscribing to their classes/workshops or the stock tips. The book references the financial market's emotional roller coaster, particularly during times of extreme optimism and pessimism, as seen in the 2008 financial crisis and the Bitcoin boom.

The Value of Time: Housel highlights the concept of "getting rich slowly" and the patience required for long-term financial success. He provides examples of individuals who built wealth over decades, emphasizing that quick riches are the exception, not the rule.

There is the case of Chris Sacca, a successful venture capitalist, who initially struggled with investing due to impatience. Sacca's early investment decisions serve as a lesson in the importance of time and patience.

Mental Models: Some mental models that can serve as good tools for better decision-making are below.

1. Compounding: The power of compounding is a fundamental mental model in the book. Understanding the exponential growth of money can encourage individuals to save and invest wisely.
2. Margin of Safety: Borrowed from value investing, the concept of a margin of safety involves making financial decisions that leave room for error or unexpected events. It's a mental model that encourages cautious and conservative financial planning.
3. Time Horizon: Housel discusses the importance of considering your time horizon when making financial decisions. Short-term thinking often leads to impulsive and detrimental actions, whereas a longer-term perspective can promote more rational choices.
4. The Circle of Competence: Borrowed from Warren Buffett, this model suggests that individuals should invest in areas they understand. Housel advises against investing in complex financial instruments or businesses you don't comprehend fully. like For example, if you don't understand blockchain better not gamble with the cryptocurrencies that boomed a few years back and are biting dust now.
5. The Paradox of Wealth: Housel explores the idea that wealth can often bring as many challenges and problems as it solves. This mental model encourages readers to think about the true purpose of accumulating wealth and the potential downsides of pursuing it relentlessly.
6. Loss Aversion: Housel discusses the well-known behavioral economics concept of loss aversion. People tend to feel the pain of losses more acutely than the pleasure of gains, leading to risk-averse behavior. Understanding this bias can help individuals make more rational investment decisions.
7. Hindsight Bias: Hindsight bias is the tendency to believe, after an event has occurred, that the outcome is predictable. Housel cautions against this bias by highlighting the unpredictable nature of financial markets and the danger of overconfidence.
8. The House Money Effect: This mental model refers to the idea that people tend to take more risks with money they perceive as "house money" or winnings. Housel discusses how understanding this concept can help individuals avoid reckless behavior after experiencing financial gains.
9. Narrow Framing: Narrow framing is the tendency to view financial decisions in isolation rather than considering their broader impact. Housel encourages readers to adopt a more holistic and long-term perspective when making financial choices.
10. Diversification: Housel emphasizes the importance of diversifying one's investments to manage risk effectively. This mental model underscores the idea that spreading investments across different asset classes can help protect against significant losses.

Bonus Tip : Reasonable > Rational

My tweet post on twitter(X) goes like this, "Clearing my home loan may not be rational considering the prevailing low-interest rates, tax benefits, and opportunity cost(equity returns) but it is reasonable to me being debt free."

There were low-interest times a couple of months back and it made sense to take loans and purchase assets or if you already had a loan then continue paying the interest on the loan and enjoy the capital gains on the investments made. But one key learning I picked up from the book is it is important to be reasonable over rational. Staying debt-free offers financial peace of mind, increased savings and investing opportunities, lower financial risk, reduced stress, and greater control over your financial future, among other benefits. It allows you to allocate your income toward your goals and values rather than servicing debt. And that staying debt-free I consider being reasonable.

Atomic Habits - Tiny Changes Remarkable Results

This is one of the books I read last year and helped me with good productivity hacks. For the benefit of my readers, I am going to summarize some of the learning from the book. This is a must-read for people, especially those struggling with procrastination.

Here's a summary of the key points in the book:

The Power of Atomic Habits: "Atomic habits" are tiny changes or actions that compound over time to produce remarkable results. It's not about making huge changes all at once but about focusing on small, manageable habits.

The British Cycling Team: Clear highlights how small habits and improvements led to significant success for the British cycling team. They made tiny adjustments in areas such as bike design, nutrition, and sleep, collectively resulting in multiple Olympic gold medals.

The Four Laws of Behavior Change:

1. Cue: Identify the triggers that initiate a habit.
2. Craving: Develop a strong desire or motivation for the habit.
3. Response: Implement the habit itself.
4. Reward: Experience positive outcomes or rewards as a result of the habit.

Habit Loop: Habits are formed through a loop of cue, craving, response, and reward. To change a habit, you can manipulate any part of this loop.

Alcoholics follow the habit loop of cue, craving, response, and reward. It shows how cues (meetings), cravings (desire to overcome addiction), responses (attending meetings), and rewards (support and community) play a vital role in changing behavior.

The Importance of Identity: A lasting change comes from a shift in one's identity. Instead of saying, "I want to lose weight," one should think, "I am someone who makes healthy choices." 

This reminds me of the Pygmalion effect taught in the Consumer Psychology and OB courses. It's also called a self-fulfilling prophecy where whatever we think kind of influences our behavior

Habit Stacking: This involves attaching a new habit you want to build to an existing habit. By linking the new habit to something you already do consistently, you make it easier to remember and integrate into your routine.

Environment Matters: The significance of designing your environment to support your desired habits. Small changes in your surroundings can have a big impact on behavior. For instance, place healthy snacks at eye level in your kitchen to encourage better eating habits.

The experiment of removing the TV from the bedroom exemplifies how modifying one's environment can facilitate better habits, in this case, improving sleep and family time.

Plateau of Latent Potential: Progress in habit-building often appears slow initially but compounds over time. Consistency is key, as small improvements can lead to significant transformations.

The Two-Minute Rule: Make a habit so simple that it takes less than two minutes to complete. This reduces resistance and makes it easier to get started. This helps prevent small tasks from piling up and becoming overwhelming

Time Blocking: Organize your day by blocking out specific chunks of time for different tasks or activities. This creates structure and helps you focus on one task at a time.

Implementation Intentions: Use "if-then" statements to plan your response to specific situations. For example, "If I'm tempted to check social media during work hours, then I will take a short walk instead."

Use Temptation Bundling: Pair an activity you want to do with an activity you need to do, so you're more likely to follow through with both.

Charles Duhigg's story of Claude C. Hopkins transforming the toothpaste industry highlights the concept of creating a daily routine (brushing teeth) by associating it with rewards (fresh breath).

Never Miss Twice: If you slip up on a habit, don't let it derail you completely. Get back on track as soon as possible to avoid the habit's decay.

An anecdote from the book; "Don't Break the Chain": Comedian Jerry Seinfeld used a simple habit-tracking technique to improve his writing. Seinfeld aimed to write jokes every day, and he marked a calendar with an "X" for each day he accomplished this goal. Over time, the chain of X's became motivating, and he didn't want to break it, leading to improved consistency in his work.

The Goldilocks Rule: Find the right level of difficulty for your habits – not too easy that they're boring, and not too hard that they're discouraging. 

This is something we apply in our budgeting process. Basically, the budget we set should be aspirational and achievable. If it is not aspirational it doesn't really push for improvement and at times gets boring and if it is not achievable then one would lose the motivation to achieve it.

Make It Satisfying: Reinforce good habits by making the rewards satisfying. Feel a sense of accomplishment when you complete a habit.

Habit Contracts: Make agreements with a friend or accountability partner to hold each other responsible for specific habits. External accountability can be a powerful motivator.

The book provides practical advice and a framework for individuals looking to make positive changes in their lives by focusing on small, consistent actions that build up over time. It combines psychological insights with actionable strategies to help readers understand and improve their habits for long-term success and personal growth. People who have completed their MBA with an interest in HR (OB) will find many concepts covered academically. However, the interesting aspect of the book is how James Clear brings out numerous anecdotes, some of which I have included in the summary above.

Bonus: Visualization Habit - Michael Phelps's use of visualization showcases the role of mental habits and how they can influence physical performance. Visualization serves as a mental cue and response that helps prepare him for success. In fact, this reminds me of a story I read about Virat Kohli, who also uses this visualization technique to simulate the scene on a cricket ground and then practice. He imagines facing some of the toughest bowlers and visualizes how he deals with each of their deliveries. Sometimes, even before going for an interview, I check the LinkedIn profiles of my interviewers and familiarize myself with their faces and interests. I remember looking at a photo of one CFO for almost 10 minutes before a final round interview. Trust me, it works.