YouSaid · the spoken record

Vitaliy Katsenelson

lines on the record: 70
first: 2024-03-24
most recent: 2024-03-24
sittings or episodes: 1
sources: podcast

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“Give you one link, and there you can read my articles, listen to my podcast, and it's very simple investor.fm, like FMRadio, investor.fm. You can read my articles sign up for my newsletters, which absolutely free. And you get to learn about classical music, art, different things, and you can listen to my podcast, which is going to be read to you, not by me.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Mean reversion. So they were high, they declined. Now you have in the past you had a couple things going for corporations that benefited profit margins. Number one, we had very low interest rates. And number two, outsourcing. We basically, we shifted a lot of our industrial capacity out of the United States to other countries. Now, as we bring this industry, the world is a lot less friendlier place than it was three, five, ten years ago. And therefore we'll be bringing a lot more industrial capacity to the United States or to our friends. And therefore, I would argue most likely we benefited from outsourcing. And now we're going to be insourcing. And that's going to put pressure on corporate margins. I'd argue this book is actually more relevant today than it was in 2011.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Bubark gets started. That's it. I just described the whole book in 30 seconds. However, what's interesting about this, after I wrote the book, I never expected the interest rates decline to zero in some countries to negative levels, and that changed the dynamics because PriceTronics declined and then they just went up because interest rates were so low, the stocks became a lot more attractive than zero almost negative interest rates. And I think we are at the point today when probably my book is more appropriate than when I wrote it because the market is expensive. And there is an interesting if here. Since I wrote the book, the corporate profit margins have increased tremendously. We are at the highest level today in the corporate history. And therefore profit margins historically would mean”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“I think in the book I discussed a framework, and I was very direct about this, that the one thing, like the framework is very simple. Whenever the markets have become very, very expensive, they usually, the markets that follow are not kind of bear markets, kind of the markets that decline for a long period of time, but are kind of a sideways markets, where basically you have a lot of volatility in the markets, but the slope of them is flat. And so during that flatness what's happening is just price churnings is declining, why earnings are growing. So if earning price earnings was 25, as earnings have increased and prices haven't changed, the price earnings goes down to eight or nine times earnings. Everybody who loves to own stocks, whether they were 25 times earnings, and now they're at nine, they say we'll never own stocks ever again. And that's how next.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Articles a year. And I said on January 1st, I have like, I don't have 40 articles. I don't have 40 essays. But as life happens, I get ideas because I can't look for them. I get ideas. And I ended up writing 40, like when I started writing, I was so concerned I was going to run out of ideas. I was paranoid about this. So it's a writer's brain is extremely powerful because it's basically, so I think the writer, the writer's blame, the more you write, the more writers blame you develop. And then I think it just changes how the way you look at life, period.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Person I write in the morning. If you're Walter Isaacson writes at night, so he's a night person. Great. Just link it to something you do every day and write every day. It doesn't matter how much you write. Just start writing and then over time, writing so powerful because what happens if you write long enough is you develop what I call writer's brain. And writer's brain has a kind of a mind of its own. I like this mixture of all this different analogies. But basically what happens when you start writing all the time, with the writer's brain, you start constantly looking for stories, for ideas. You're going to look at life differently than other people because you're going to constantly looking out for those things. Something that goes unnoticed by others, I notice because, again, I'm looking for ideas. A friend of mine asked me, how can I write so much? Because I write probably maybe 40 hours.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“As you write in new concepts. And this is part of the reason why I love writing, because again, it's a focused thinking. It's a I think as I write. I'm sure there's a very cute word in it, Aramaic or something, like abracadabra-like word. But I think as I write, so writing is probably one of the most important things that has happened to me as an adult because think about it. I write two hours a day almost every single day. And that's like 700 hours a year. That's a 700 hours of focused thinking. That is a significant competitive advantage. When people ask me, what advice would you give to a young person? I would say number one right. Just write every single day. And again, we can go through the same kind of exercise if we want to meditation, find the time that works for you. I'm a morning.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“So, I think these 20 mental models, combining mental models, storytelling, is a very important technique because it's such a great question because I didn't realize until now. I guess I was telling stories because I just wanted people to read my boring content and I just didn't want it to be boring. I guess that's how I became a storyteller. I didn't really realize it until now. But yes, but I think it's an incredibly important tool. And a lot of times I know what I want to say when I sit down to write, but I don't know. But I spend most of my time discovering how to say it, what analogy to use metaphor, whatever. And I think this is where I spent probably the most of my time. But also a lot of times, and if you talk to almost anybody who writes, what they sit down to write and what they end up finishing writing looks very different because a lot of times you start writing, you start discovering new things.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“I need to communicate to them how I analyze the company, how I look construct portfolio. And I need to do it in a way that doesn't put them to sleep. Because I write, like I literally write 30-page letters and I want them to read that. So therefore, I need to, I know that it may take me more than a day to read it and it maybe take a few bottles of wine, which is fine. But I want him to finish it. So therefore, I need to tell them through stories. And so they can something that's complex, it's going to be easier for them to relate to. So I think a storytelling are very powerful. Also, I think the Charlie Monger was very big on mental models. And mental models to some degree kind of a form of storytelling in the sense that you can port one framework from like the beat of mental models. You can port one framework from one disseminate to another.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“If I think about my writing, what I try to do is storytelling. If you think about storytelling, it's probably the least efficient way to communicate. And what I mean by this, if KPI for efficiency number of words you use, because you can probably say everything I say in that paragraph, what takes me a page to say a page at two to tell through a story, you can sum it up in a sentence. But the problem, the thing is we as human beings need stories. This is how basically we go through life. That's how we experience life through stories. The finance could be very dry and boring and get people to, like, so like, let me give an example. Three or four times a year, write letters to my clients. A lot of my clients are just very smart professional people who are not investors.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“He's just trying to make money for his clients. It's not a, he just wants to be right. He wants to discover truth before time does. That's it.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Is that this is a person who seeks out, he wants to understand the other side. Because as a short seller, there's always, you are a minority, almost by definition. He always wants to understand what's the other side argument is. And he usually can state the other side argument better than the other side. And I found on a different, there was several times where we were on opposite sides of a stock. He was short, that was long. And I found it to be fascinating because how unemotional, fact-based our discussion was. And I also know other short sellers who look at anybody who loans the stock as a moral enemy and not Jim Chainos. And I think I respect him a lot for that because he's in a scientist mode.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Cover this conversation because it's a waste of time. So, this is why I avoid token politics because people thought somebody get calcified and they won't change their mind. So what's the point of having this debate if you're not going to learn anything? They're not going to learn anything. So there is no point in this. But I think just if you look at your life and just ask yourself how much time I spend in each mode of communication, if you spend a lot of time on the 3P modes, unless you are a lawyer, if you're a lawyer and you're on quarterly time, you probably should be spending more time with prosecutor mode. But if you're doing research, you should be spending most of your time in another prosecutor mode, but in a scientist mode, let me give you one more example. Have a friend who is a very, very famous short seller, Jim Chanos. And what's fascinating about Jim Chanos?”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“And when they created the first iPad for him, he looked at it and said, perfect, let's go make an iPhone. And because he realized it's a much bigger product than iPad. And he could see what iPhone was going to look like. I think as an investor, when you're doing research, that is a scientist mode behavior. When you're learning something new, like when you're learning something and you should spend a lot of time as a human being learning a lot, then you should be in a scientist mode. If you are trying to get a girl to like you, politician mode here is more appropriate. So it's a, but I think whenever it comes to learning, whenever you have debates, and especially, okay, this is very important. I would argue you want to spend as little time as possible in the prosecutorial debates. If at the end of debate, nobody, there's zero possibility that any party is going to change their mind probably should not.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Okay, let's go through some examples. You get pulled over by a policeman. Probably don't want me in the scientist mode. There is a time for remote mode, but I think it's a, if you are trying to get your employees riled up to achieve something, again, scientist mode is probably not the right mode. Like Steve Jobs was famous for his preacher mode, right? Like his distortion reality field, right? That was not a scientist mode. However, at the same time, when somebody, he wanted Steve Jobs really wanted to make an iPad originally.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Three other modes, then especially in the prosecutor mode, then that idea gets calcified and becomes part of your identity. So you should be very careful. You should have a lot of ideas in your head should be really be theories. And you should be very, very careful what becomes your identity. Like for me, part of my identity has been kind. When it comes to politics and many other things, whatever, that's not part of my identity because I'm willing to change my mind. If I'm willing to change my mind. So it's very important to examine how your beliefs are formed, to re-examine your beliefs.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“You start looking for the truth. And as an investor, you want to spend a lot more time in that mode. Also, there's another very, very important thought here is that a lot of times our beliefs are formed completely randomly. There is this Hebrew word abrakadabra. And that word means I create as I speak. So as you start saying things, you start believing them. If I ask you something and something like something you haven't thought about before, and the first thing that comes to mind, if I start, you know, you say, this is what I think I believe and I start debating you, even though you haven't had a chance to think through yet. But because you and I started debating it, if you are not in scientist mode, if you are not one of the...”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Spend most of the time. Seneca has this wonderful quote that I need to frame Time discovers truth. And if you think about it again, time discovers truth. If you think about investing, that's what investing is. Like when I make an investment decision, I'm trying to discover truth before time does. When I discuss ideas with other investors, I want to be in a scientist mode. What it means is that anything we discuss is a theory and if it's a theory, it's multiple. If it's a theory, then you also, again, if you try to discover truth, you basically want to say here are the assumptions I make. I'm assuming this, this, this, and this. And when you debate that stocks with my friends all the time, they say, well, let's debate this. Let's figure out this assumption. And suddenly you're just, it changes the way you look at it because.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“When you go on a date, you're in a politician mode. Because what you're trying to do, you're trying to get somebody to like you. So when the person says something, you don't fully agree with, you kind of miss, you know, you kind of brush the side, don't focus on this. You try to omit the negatives because you're trying to get somebody to like you. A politician tries to get other people to like me, to get re-elected. We do this when we look for jobs, when we go on dates. So we spend a lot of, but we spend a lot of time on those moments. And they're important, however. If you spend a lot of time, like most of your life in these modes, you are not going to progress as a human being. You are not learned much because none of this modes are, you're not learning in those modes. For the most part, the outward communication modes. Now, the scientist mode is the mode where investors especially should”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Thing. So I got to give credit for this to Adam Grant who borrowed it from another of his, I forget the guy's name, from another colleague of his. So you have this, the preacher mode. So we all, so basically, we all at different times use these modes. When a preacher, imagine somebody like a preacher in the church, right? He has the idea and he's basically wants to communicate this and he wants everybody to kind of do buy into whatever he's selling. Like his ideas, right? See, one way of communicating. It's a kind of, it's going out. Communication going out. Then you have a prosecutor. And prosecutor is basically a person who is trying to change your mind, doesn't really care about the truth. The whole point is there is just to change somebody's mind. Then you have a politician mode, and I argue that politician mode is where we spend a lot more time than we realize.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“In this way, you realize you're actually doing a good thing. Like, I'm creating, I'm spending more time doing things the most value. And I'm creating jobs for people that wouldn't have jobs otherwise. So anyway, so I thought that reframing is kind of very liberating.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Story. He lived in Mumbai and he lived on the third or fourth floor. And this was very, very hot and muggy, so he would take a shower three times a day. And one day he is walking down and see a guy carrying buckets of water. He's like, why are you carrying buckets of water? He's like, well, sir, you're taking a shower? That's no pump, so that's the water we use for you to take a shower. And the guy says, oh my God, I'm taking three showers a day and you have to do this. I feel so horrible. Like I'm going to start taking one shower a day. He's like, and the guy says, no, no, sir, please take five showers a day. Because if you take in showers, I have the job. Okay, my point is this. You have like you have an assist by me have any need to have somebody schedule appointments. I created the job. By me not doing recording podcasts myself. I created the job. So once you start looking”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“On scheduling when the appointments, etc. They add very little value. And over time, that timer adds up. So by delegating this task to somebody else, they will actually, it's actually like buying time, basically. There is another kind of interesting dilemma here because you almost, I used to have this feeling like I don't like feeling like I'm superior to somebody else when I ask my assistant to do something I don't like the kind of the feeling I get I used to not like the feeling I get that I'm asking to do things for me but then I read this book there's this wonderful book completely unrelated to investing called Shantaram and it's incredible by the way I highly suggest the book it's about India and there was this this it's about this Australian going to India in the 1980s and he tells this wonderful”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“And if I take this 15 minutes and if I do this, it means I'll have less time doing something else. The springtime is my friends doing research, whatever. I started to delegate things a lot more. So if I don't, it's basically two categories. I had a lot of value. I enjoy it. I'll give you a couple more examples. When it comes, like in the past, I remember 10 years ago, 10, 15 years ago, when I would try to have an appointment to schedule a call or an appointment or dinner with my friends, some of them would have their secretary, their assistant would do those, would schedule those appointments. And I felt like my friends were trying just to show how successful they are. And by doing this, and now I realize I was completely wrong. What they basically realized that the time they spent”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Went through prioritization of my life, right? I should be spending most of my time at work, basically, on investing. But other things come in. Like I write articles. And then what we do, we have a podcast where basically that article is turned into kind of an outer form, like an outer book. If you don't have time to read my articles, you can listen to them. At some point in time, we had to make a choice who is going to read those articles. I realized that I enjoy first of all, enjoy writing those articles. I don't enjoy reading them. Also, reading them would consume another 30 to 50 minutes per article. So what we decided to do, we just hired somebody who would read those articles out loud to my listeners. So what I did, I basically realized, okay, number one, I love writing and I cannot this way add value. Somebody else can do probably much better job reading than I can.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Not your enemy. Let me give you another example. I changed my diet. That's now my lifestyle where I basically eat meat and vegetables. So we have a benevolent dictator at my global headquarters. The company actually, we are not Google, but the company basically buys groceries for the office. But there's a condition. You can buy high quality protein, high quality vegetables and fruits. No processed food is allowed in the office. Okay, because again, I want the environment to be my friend. And therefore, I've been eating very healthy for the last six months. Like, you know, once we instituted that. I try to kind of mold the environment to be my friend, knowing my weaknesses.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“And this is where I go and I read that iPad basically is connected to internet, but it doesn't have any communication software in it. So I just download 10Ks, transcripts, whatever magazines I want to read, and that's where I read. So that is because I find that what you want to do, you don't want to fight your environment. You want to be environment to be your friend. So use as little willpower as possible. So if I'm sitting, imagine this. Let's say you don't look like you need to lose weight, but let's say you decided you want to quit sugar. And then what you did, you put apple pie donuts, mars candy right next to you and said, yeah, I'm trying not to eat sugar. That's going to be like you're basically, it's very exhausting because how much energy is going to consume your willpower going to consume you not to reach for the donut or for the Mars bar whatever, right? So you want the environment to be a friend.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Only your thoughts start to interact with each other slightly differently. I find going outside is very important for my creativity. And by the way, I would argue investing is a creative endeavor. So I usually have phone calls after 2 o'clock. Any tasks that are not creative, I usually push it after one or two o'clock. In addition to this, right now we're sitting in my office where there is two big monitors. I have another office next door.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Okay, I'll give a couple examples. Number one, I find that my most productive time is before 2 p.m. So I rarely, if ever, have any appointments before 1 o'clock. The from five to seven roughly I write, that's my writing time. And from 8 to 1 to 2, this is the time I focus on investing. Every day I go for walk in the park. And I would argue, and to me, it's almost like a religious experience because I find it incredibly important for creativity. Because if you look around Eutitania right now, every single object around you has a symmetrical form. Everything from this phone to the screen to everything is symmetrical. And therefore, it's almost like the electrons in your brain kind of move in a symmetrical form, in a parallel form. When you go outside and you are around trees, there's nothing symmetrical about trees.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Investment friends whom I talk to all the time. So we share a stack ideas, etc. And they could be New York and London or Zurich for that matter. But I feel like today you don't have to live in New York anymore. And I think that's kind of Baffet, I think, at some point identified him living in Omaha, being far away from everybody else, allowed him to, it's almost like you have your own internal clock and your clock is not set by the environment. And I think when in New York if you're not careful, that's what happens to you.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“It's not okay, at least I'm speaking for myself. That's not a life I want to have. I mean, again, there's a lot of it's possible to live in New York and not experience that. But I think it's the uphill bottle. Living in Denver, I don't experience that. I live in this little micro bubble where I go to the park, I drive my kids to school. I don't experience the social pressure. And I love that. And I think it allows me to have a longer time horizon. And I think it allows me also not be as focused on material things. Again, I know it's like an investment guy writing a book about Stoicism and Life and then telling you how important material things are. I'm not living on the street and eating banana. That's not the point. But my point is it's not the material things do not dominate my life. I mean, they're still important, but don't get me wrong. But then they don't dominate my life. And so I think that's a huge advantage of living in Denver. So I still have a lot of friends.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Three days explaining for me, and I come back, I'm completely drained and exhausted now, but there is something else there too. If you are in a finance industry and you live in New York, you are basically, you get plugged into this red race. Everybody compares, like there is this second order comparison all the time, how far do you live on east side of the park, Central Park or West Side? Does your apartment has a balcony? How far is it? What floor does it have a doorman? So it's a, oh, and by the way, do your kids go to private school? Which private school? So it's always what happens. Again, I'm generalizing. But if you're not careful that retrace, that environment is so toxic that suddenly you start living by somebody else's values, which I would argue is not a good way to.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“What's interesting? I ended up in Colorado not because I wanted to be like Warren Buffett. I was just, it was a lack of a draw. When we came from my aunt who left Moscow in 1979 and moved to Brooklyn, she married a rabbi and they moved to Cheyenne Maomi. So when she invited us to come over to the United States, luckily she invited us to Denver. It's 100 miles away. So that's how I ended up in Denver. And so initially living in Denver was not a choice. I didn't make the choice. My aunt made it for us. But then later in life, I actually made, deliberately made the choice. I would go to New York and I love, by the way, I love going to New York. I love going to Manhattan. I love the energy. I love the culture. I love going to restaurants. I love going to theaters, museums, central park, walk in the streets. I love it. The only problem is I also love coming back.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Going to happen over the next six months. Well, you know what happens over the next six months? There is not a forever. So if you can live through the next six months and the company doesn't die, you may have an opportunity. This cold shower is basically, I look at it as an exercise of basically kind of practicing, like identifying my thoughts, like my fear and conquering it every single day. And I'm sure there are a whole bunch of other health benefits, but that's unrelated to Stoicism.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“And actually, it's almost like you break it up into two parts. You look at the shower, I mean, actually three parts before you get into shower, being during the shower and after the shower, after the cold shower. So the part I'm talking about is you standing right before the cold shower and you getting in and you really don't want to. And then you start asking yourself, so what's the worst thing that's going to happen to me? And you start preprinting, you start thinking about this, if you think about life, a lot of things that we have to do in life, we don't want to do them, but a lot of times you overthrow. I'm going to dramatize them in our heads how horrible they are. And once we go through that, it's not such a big deal. By the way, that relates to stock market all the time. The stock market hates its uncertainty. And a lot of time you can take advantage of that because they are afraid.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Think when we call stoic philosophy philosophy, think we're doing a little bit disservice to it. Let's call it stoic practice. And the reason it's practice because it's a muscle you need to train. Just like you need to train yourself to meditate. And by doing this, you're going to start observing your own thoughts. Same way, you're going to, the more you use these tools, the better you're going to become as these tools. Okay, so it's a constant, never-ending practice. And cold shower is the kind of, it's basically, so like when you go to the store and the caloric is not rude to you, you don't get practice stoicism, unfortunately. However, you can create this kind of practice every day of stoicism when you do cold shower because basically, like there's a lot of studies that tell you that taking cold shower is good for you, but that's not what I'm talking about. I'm talking about turn on cold shower.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“I think it's a kind of when you look at when you buy before you buy a stock, you kind of visualize it's been down 50% and been fine with that. And I think that's easy, because by the way, same thing with your portfolio, because at some point it will be. Again, I love this phrase. Do you really expect to go through life as an investor and not see a portfolio decline by 20, 30, 50%? And if you do, then you should not be an investor. You should not be investing. You should buy money market funds or bonds or whatever. You should not be in stocks. That kind of phrasing, do you really expect to? And then you, you know, I do it all the time.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“And I used to, this is true. I used to dread is not the right word, but I used to look at drying my kids to school as a chore, as like I put it, I used to put it in the same category as taking out trash. So it was horrible. But it's like, I love taking out trash as much as I loved before I go to work, you know, put into kids in the car and hear the yelling and screaming and driving. And then when I realized that my time is so finite, after your kids go to college, you spend probably 90% or 95% of your time with them. And once I realized how finite it is, actually now I volunteer to drive my kids to school. Now I want to drive my kids to school. But the irony of this is the action is the same. I'm driving my kids to school, but I changed every frame how I look at it. And see again, it's a reframing and negative illusion. Together”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, oh, absolutely. Let me give you a couple examples. Every day before I write, I get a cup of coffee, but before I get a cup of coffee, I linked push-ups to the cup of coffee. And when I do these push-ups, and I'm not a big fan of working out in general, I'm not a big fan of doing push-ups, but I tell myself I'm so lucky that I can actually do these push-ups. There will be time when I won't be able to. Just think about it. So now I actually appreciate that I get to do pushups. You can use negative visualization this way. We already talked about your kids growing up. If you realize how scarce your time is with your kids, you're going to appreciate that time more.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“About a lot of times, what we're trying to do, we're trying to trick ourselves to basically kind of remove stress out of unnecessary stress out of life. And this is what Stoicism helps you. Just gives you all these different tools, frameworks to remove that unnecessary stress.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Is where negative visualization comes in. You say, How many people, like I could have been driving home from the hospital where the doctor told me I have two weeks to leave? Or I could be living in Ukraine right now and being bombed by Russia or whatever. So negative visualization often a lot of times what it does create this contrast that makes us appreciate what we have, which we take for granted because we get used to it. And a lot of times I tell you like we went to Mexico a couple of years ago and we had supposed to have this ocean view room and we didn't get it. And I literally was going through this and I was like telling my wife, you know what? We get spend vacation in Mexico. Nothing could be that bad. It's not so bad. This negative visualization, what it allows you to do is you start looking at your situation and realize it's not so bad because it could be so much worse. And suddenly, what you just did, if you think...”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“That's where mindfulness comes in, and this is when you feel like, okay, this is an opportunity where most likely I'm going to react negatively. You identify that, and then you change something. You can use negative visualization and other concept. I'll give you an example. You're driving, your wife calls you up and says, Kyle, I have this incredible turkey and gravy. Come home, we're going to have a bottle of wine in Turkey. And you're driving home and you're stuck, there is a car accident, you're stuck and two hour traffic. Now you can frame it as I'm sitting in this metal box and there's a turkey and gravy waiting for me and wine and how horrible my life is. Or you can say I have an opportunity to sit in the car and to listen to wonderful podcasts my guest Vitaly has. Okay, so you could do that. Or in this”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so if you think about Stoic philosophy, it's just really there's a whole bunch of mental models that you can use interchangeably with each other. You can sometimes say multiple mental models you can be used at once. Event judgment reaction. So something happens. At this point, you have an opportunity to judge. Like you're driving to work and you have all the red lights. It's events and you're judging it as just part of life. You kind of accepted it as a part of life. Somebody's rooted you. Now, first of all, you may choose to reframe it. The event, judgment, now you can use a reframe it as a framework. You can also, therefore, once you reframe it, your reaction is going to be different. It's a basically, and this is where meditation comes in, that space between the event, judgment,”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Double click on this because I think investing, that's perfect. If you're an investor, you need to practice the economy of control every single day. And that's what you do. Because what's up to me is my process. It's up to me learning, trying to get better, having executing, doing a good research, executing a good process. That's it. After I bought the stock or when I own the stock, what happens to the, you know, there's so many good things that bad things get happen. None of those things are up to me. Okay, so now, and also the market will price my stocks. My market, in addition to this, has an opinion on every single stock I own in the portfolio, but 5,000 times a day. Again, that opinion is not up to me either. Realizing that what's up to me is also to reagn or doing research and reacting rationally. By the way, bad things will happen. And when bad things happen,”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“And sometimes people just have a bad day. Like, if you assume benevolence, your life is going to be so much easier. Because you realize we all have, you may be dealing with a person who just really had something bad happen to them. And they are reacting to you is not really to you. It's really they're reacting to other things happening in their life. But you taking it personally, what you're doing, you making your life worse, but you reframing it, what you just did, you remove unnecessary stress out of your life.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Line email basically says that said, Listen, I understand this is not your words. This comes from your family. But you have a couple options. I can do everything you want me to do, but then why am I charging you fees? And also, if you want me to do those things, you probably don't need me. So we can just move on and terminate the relationship. So this was the first line. And then what I did, I took this and put it into chat GPT and said, please make it very nice. And they said, Dear Chris, I hope the sun is shining and you're part of Israel. It is basically what was two lines became like half a page. And I sent her both versions. I said, here's an Israeli version. Here's an American version. You decide. She loved so hard about this. And she's like, I love the Israeli version so much more. But again, the point I'm trying to make, you're going to meet people and what you think is rudeness sometimes just, it's a different style of communication.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Reaction to it. If you color it as they've been, you know, you frame it, as they've been rude, you start interpreting them in rude and it has negative reaction. And you have a negative reaction. That's kind of an interesting example. I'm sure the couch for differences, like a very true story. Let me just, I think it's just a wonderful story. So we have this client, and she's been client for a long time. And we have actually became very good friends. And we managed significant sum of money for the family. And she sends me this email and she says Vitaly, which never happens like this. This talk is too expensive. We need to sell this. This stock, the dividend is too low. We should sell it. This stock dividend is high. We should buy more of it. And this is like, I'm not a broker, I'm a money manager. So people usually give me money and say, well, people not usually always give me money and say invest it for us. So I never get a treatment like this. And here's what I did. I basically wrote this tool.”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Say you just what I just did, I just basically framed somebody saying words and I said they were rude. Actually, I'll give you an interesting example. It's a fascinating example. We have some Israeli clients. And I don't know if you ever communicate with Israelis. They're incredibly direct. Like it's direct to the point that you think they're rude, but they are not. They've just been direct. It's very interesting because I tell my staff when they talk to my coworkers, when they talk to Israeli clients, they're not being rude. They've just been direct. That's what culturally they do. So we really have a choice to frame anything. We can color it any way we want. We can color it as people basically been direct to us or we can color it as they've been rude. If you color it as they've been direct, suddenly you don't have an”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Single person I'm ever gonna meet is gonna be kind to me and nice to me. Probably not. So you should be prepared that there will be time when people are not nice to you. And again, what you can control is how you respond to them being not kind. Also, and we can talk about this now, when somebody is not”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT
“Teacher. So the concept, the Academy of Control is a concept that came from a pictetus. And he says some things are up to us, some things aren't. But then he continues and he says things that are up to us are our values, our decisions, how we react to things. I'm paraphrasing. Everything else is not up to us. Kyle, you drive into work and you get a green light every single time. That's good. But another day you drive to work and it's a red light. Well, you get a green light or red light is not up to you. But what's up to you is how are you act to it? You go to grocery store and the clerk is rude to you. There are a couple things. We can double click on that. First, we have zero control how other people will treat you. And also sometimes you should ask yourself a question, do I really expect to go through life and every”
2024-03-24 · We Study Billionaires · TIP617: Improve Your Investing Operating System w/ Vitaliy Katsenelson · IDENTIFIED FROM THE TRANSCRIPT