Last week, I talked about how first principles thinking fails. This week, I go deep into one specific example: commoncog.com/blog/cash-flow
(Yes, the title is not a mistake ;-)
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The piece is long because I had to bootstrap an intuitive understanding of cash flows. If you have a finance background, you'll find this rather boring (and terribly basic!)
But I wanted to demonstrate that not understanding a SINGLE axiom might lead to a mistaken conclusion.
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One thing I realised while reading this — there's so much more to John Malone than I thought. I'm currently working my way through Cable Cowboy (goodreads.com/book/show/6794) and the best description I have for the book is 'a business thriller for those who enjoy corp finance'.
