Author Topic: death of mnd  (Read 2207 times)

luigi49

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iamlindoro

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Re: death of mnd
« Reply #1 on: March 10, 2015, 08:04:53 PM »
Quote
Olen reminds us that the Stanley millionaire model was a bit fraudulent from the start. Economist Nassim Nicholas Taleb noticed, in his own book, "Fooled by Randomness," that the picture painted by "The Millionaire Next Door" was the product of survivor bias -- "the authors made no attempt to correct their statistics with the fact that they saw only the winners," he wrote. What of the millions of investors who invested in the wrong things or whose paving companies failed? They outnumber the winners by a large margin.

What a totally fundamental misreading of the concepts in TMND.  The point of the book wasn't that buying one $300 in your suit in your life makes you rich;  It's that among the rich, they tend to be the type of people who only buy one modestly priced suit.  It's not a study in how to get rich, but rather, of the qualities shared by those who do.  Emulating those qualities doesn't guarantee you a million bucks, but it does drastically increase your chances of accumulating *and keeping* that much, by not consuming conspicuously!

Irritating.  And no comment section on the article.

 

Wow, a phone plan for fifteen bucks!