Lily Lee

1. The Futility of Changing Others

Understanding the difficulty of self-change can provide insight into the near impossibility of changing others.

Each person is molded by their unique life experiences, making change challenging. It's far more effective to focus on personal growth.

Bevelin echoes this when he writes

"Consider how hard it is to change yourself and you'll understand what little chance you have in trying to change others."

2. The Ephemeral Nature of Bull Markets

Like fleeting pleasures, bull markets can feel incredibly satisfying just before they end. This metaphor illustrates the unpredictable and transient nature of economic cycles.

It's an essential reminder for investors not to get caught up in the euphoria, as Bevelin warns

"A bull market is like sex. It feels best just before it ends."

3. The Companion of Wisdom: Sorrow

Wisdom often arises from sorrow, but learning from others' pain can prevent our own. This teaches us the importance of empathy and shared experiences in acquiring knowledge.

Bevelin writes:

“Sorrow is often wisdom’s companion, but it is better to learn from others sorrow to prevent our own.”

4. The Art of Praise and Criticism

Effective feedback often involves praising specific individuals and critiquing the category of behavior.

This approach emphasizes positive behavior while critiquing actions instead of the individual.

Bevelin emphasizes:

"Praise by name, criticize by category."

5. The Constant Human Nature of Wall Street

While stocks and investors may change, Wall Street remains constant due to the unchanging nature of human behavior.

This timeless wisdom applies to all areas where human behavior is the main driver.

Bevelin notes:

“Wall Street never changes... because human nature never changes.”

6. The Foundation of Eloquence: Understanding

To speak convincingly on any subject, a thorough understanding is paramount. Deep knowledge allows one to discuss, making their argument more persuasive.

Bevelin advises:

“No one can speak well unless he thoroughly understands his subject.”

7. The Power of Perseverance

Life often presents impossible challenges, but perseverance and creativity can turn these obstacles into opportunities.

This mindset is evident in Bevelin's metaphor.

“Show me a ten-foot wall and I'll show you an eleven-foot ladder.”

8. The Measure of Wisdom: Seeing What Is Necessary

Wisdom lies not in knowing everything but in understanding what is essential.

Bevelin quotes Montaigne:

“A wise man sees as much as he ought, not as much as he can.”

9. The Danger of Wishful Thinking

Believing in things because we wish them to be true is a sign of an ill-regulated mind. This wisdom warns against the pitfalls of confirmation bias and promotes critical thinking.

Bevelin warns:

“The greatest sign of an ill-regulated mind is to believe things because you wish them to be so.”

10. The Pursuit of Wisdom Through Constant Learning

One should strive to end each day wiser than they began. Constant learning and mastering your craft is the surest way to succeed.

Bevelin counsels

“You have to go to bed wiser than you got up."

11. The Complexity of Macroeconomics

Macroeconomics is often misunderstood due to its inherent complexity, and this underscores the importance of humility and continuous learning in understanding complex systems.

Bevelin points out

“Macroeconomics people...are often wrong because of extreme complexity in the system they wish to understand.”

12. Timeless Investing Principles

Looking at stocks as part-ownership of a business, using market fluctuations to your advantage, and always ensuring a margin of safety are Bevelin's three timeless principles for investing.

They stress a rational and strategic approach to investing.

13. The Interplay of Nature and Nurture

Our nature is a product of both our natural and cultural history. Understanding this interplay can provide profound insights into human behavior and decision-making.

14. The Role of Genes and Environment

Genes influence our brain chemistry, but our environment shapes their expression. This knowledge underscores the importance of creating supportive and nurturing environments.

“Genes control brain chemistry but are turned on and off by the environment.”

15. The Acceptance of People As They Are

Trying to change people is often futile. Accepting people as they are is more feasible and respects individual autonomy.

Bevelin sums this up:

“We don't try to change people. It doesn't work well... We accept people the way they are.”