What Is the Most Valuable Thing You Can Learn in One Hour? • Hacker News Board

Re: What Is the Most Valuable Thing You Can Learn in One Hour?

#31

Post by _se » Tue, Dec 31, 2019, 12:41 PM UTC

tempsy wrote: post #20

tuesday20 wrote: post #15

Compound interest. Simply starting early in some boring find/investment and not obsessing over daily stock prices will do wonders for one’s health and finances

I always hear this but the theory of compound interest has little to do with stock investing. Not all stocks pay dividends. Most actually do not. And betting on a general YoY rise in stock prices into retirement is not the same thing as compound interest.

Historically speaking, you're very wrong. There's no better place you could've put your money than the s&p.

Re: What Is the Most Valuable Thing You Can Learn in One Hour?

#32

Post by AznHisoka » Tue, Dec 31, 2019, 12:41 PM UTC

tempsy wrote: post #16

Moodles wrote: post #10

First aid is good. Also general investing in index funds like VTSAX and VTIAX. It is so simple, yet most people I run into on a regular basis just save their money in a checking account earning 0.01% APY. Follow the reddit personal finance flowchart. Learn about Roth and HSAs and ESPP and the benefits of diversification. We’re literally talking about multiples of your net-worth over your life if you invest compared t…

What crowd are you in where most people have all their money in a savings account? That is borderline financial suicide.

What if that account offers 2% interest?

Re: What Is the Most Valuable Thing You Can Learn in One Hour?

#33

Post by barrkel » Tue, Dec 31, 2019, 12:42 PM UTC

sunstone wrote: post #13

Why is it, exactly, that, as a rule of thumb, almost all people who start life poor and end up rich do it with real estate.

That's mostly down to financialization of the economy in recent decades combined with low interest rates. Financialization generally reduces risk (when done properly) and increases the mobility of capital both across borders and over time. Reduced risk and higher capital availability means more loans. That has enabled people to put down more money today on the basis of future income streams, which has inflated asset prices, and asset price inflation encourages more people to buy as an "investment". This goes around in a loop until interest rates go up or bad debts come due.

I wouldn't bet on asset price appreciation being a reliable route to wealth any more without an information or leverage edge, like planning decisions, political and regulation shifts, etc. which have long-term effects that result in net present value asset price changes. Sometimes the edge is basically corruption, but sometimes it's bets based on trends.

Re: What Is the Most Valuable Thing You Can Learn in One Hour?

#34

Post by timvisee » Tue, Dec 31, 2019, 12:42 PM UTC

Vim.

I think it can be in the list as well. It takes a long time to properly learn. But one hours is defiantly enough to get to know the main Vim bindings, to be as productive as in other editors. In the end it makes you super productive.

Re: What Is the Most Valuable Thing You Can Learn in One Hour?

#35

Post by tempsy » Tue, Dec 31, 2019, 12:43 PM UTC

Moodles wrote: post #30

tempsy wrote: post #20

Earlier quoted context omitted.

I always hear this but the theory of compound interest has little to do with stock investing. Not all stocks pay dividends. Most actually do not. And betting on a general YoY rise in stock prices into retirement is not the same thing as compound interest.

Stocks don’t need to pay out dividends for compound growth. Your last sentence is basically: “betting on compound growth is not the same as compound growth”. Yes ok, but a little pedantic imo. Over hundred years of evidence suggests betting on a diversified portfolio of stocks is a good idea in the long term.

It’s not being pedantic. When you talk about the theory of compound interest it’s essentially starting with $100, getting paid interest or a dividend, and then reinvesting that so now you have $102 that earns a dividend or interest and so on.

Investing in 100 shares of company XYZ that does not pay a dividend, or investing in a company that does pay a dividend but isn’t being reinvested, is not compound interest in the classic sense at all.

Re: What Is the Most Valuable Thing You Can Learn in One Hour?

#36

Post by cgufus » Tue, Dec 31, 2019, 12:43 PM UTC

One thing i‘m missing is a bit a generic one, but here goes: What are the principles that make a democracy?

(e.g. freedom of opinion, freedom of press, separation of powers a.k.a. checks and balances, Rule of Law etc.)

Re: What Is the Most Valuable Thing You Can Learn in One Hour?

#37

Post by tempsy » Tue, Dec 31, 2019, 12:44 PM UTC

_se wrote: post #31

tempsy wrote: post #20

Earlier quoted context omitted.

I always hear this but the theory of compound interest has little to do with stock investing. Not all stocks pay dividends. Most actually do not. And betting on a general YoY rise in stock prices into retirement is not the same thing as compound interest.

Historically speaking, you're very wrong. There's no better place you could've put your money than the s&p.

I’m saying a positive ROI is not the same thing as compound interest. An asset that rises in value like $SPY is not in of itself an example of compound interest.

Re: What Is the Most Valuable Thing You Can Learn in One Hour?

#38

Post by rwnspace » Tue, Dec 31, 2019, 12:44 PM UTC

Take an hour to sit in a quiet room without any stimulation. You'll learn a lot about your mental situation, and understanding where you are is really helpful for understanding where to go (if anywhere).

Re: What Is the Most Valuable Thing You Can Learn in One Hour?

#39

Post by Moodles » Tue, Dec 31, 2019, 12:46 PM UTC

tempsy wrote: post #35

Moodles wrote: post #30

Earlier quoted context omitted.

Stocks don’t need to pay out dividends for compound growth. Your last sentence is basically: “betting on compound growth is not the same as compound growth”. Yes ok, but a little pedantic imo. Over hundred years of evidence suggests betting on a diversified portfolio of stocks is a good idea in the long term.

It’s not being pedantic. When you talk about the theory of compound interest it’s essentially starting with $100, getting paid interest or a dividend, and then reinvesting that so now you have $102 that earns a dividend or interest and so on. Investing in 100 shares of company XYZ that does not pay a dividend, or investing in a company that does pay a dividend but isn’t being reinvested, is not compound interest in t…

Roughly speaking, if a company doesn’t pay a dividend, it reinvests the profits in itself which compounds its own stock price. You get the benefits of compounding stock prices that way. I think we are arguing over semantics.

Re: What Is the Most Valuable Thing You Can Learn in One Hour?

#40

Post by tempsy » Tue, Dec 31, 2019, 12:47 PM UTC

Moodles wrote: post #26

tempsy wrote: post #22

Earlier quoted context omitted.

Do they have 401Ks or pensions or other retirement accounts? Then they have stock or bonds.

Yes, I know. They don’t understand what they’re doing very well though. Education will affect their net worth massively.

There’s a difference if you’re sitting on $100K in cash earning nothing or a few thousand to use for living costs. If the latter then investing in stocks is actually not very prudent.