Book Review – The Sorrow of War, by Bảo Ninh | Rating 4/5 | Qualitative: I really liked it

Book Review – The Sorrow of War, by Bảo Ninh | Rating 4/5 | Qualitative: I really liked it A Stark, Unflinching Portrait of War This book offers a profoundly different perspective on the Vietnam War—one I was not accustomed to—told with striking clarity, raw emotion, and elegant simplicity by a North Vietnamese veteran. Through the eyes of the protagonist, Kien, we are guided into the heart of the sorrow that war inflicts on everyone it touches. His story is not just personal, but emblematic of an entire generation forced to confront loss, disillusionment, and the psychological ruins left behind. The narrative exposes the painful journey endured by every soldier and the society that bears the weight of conflict. From shattered dreams to the erosion of personal aspirations, and for those who survive, the enduring scars—memories, trauma, and the haunting presence of ghosts from a bygone era. This is a book that compels reflection—not just on the Vietnam War, but on all wars being fought even as these words are read. It reminds us that the sorrow, disfigurement, and long-lasting consequences of war are not bound by geography or time. They repeat, decade after decade. I strongly recommend this book for its brutal honesty, emotional depth, and powerful storytelling. It is a stark, unfiltered meditation on war—not only on what it does to individuals, but to the soul of a society. Happy reading. (text revised by a LLM)

- Pedro

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The 40 best books published so far this year (06’25)| From The Economist

The 40 best books published so far this year https://www.economist.com/culture/2025/06/05/the-40-best-books-published-so-far-this-year From The Economist Biography and memoir 1- Buckley: The Life and the Revolution That Changed America. BySam Tanenhaus 2-Careless People. By Sarah Wynn-Williams 3-The Optimist: Sam Altman, OpenAI and the Race to Invent the Future. By Keach Hagey. 4-Source Code: My Beginnings. By Bill Gates 5-The Thinking Machine: Jensen Huang, Nvidia and the World’s Most Coveted Microchip. By Stephen Witt Business, economics and technology 6-Apple in China: The Capture of the World’s Greatest Company. By Patrick McGee. Scribner 7-The Art of Uncertainty: How to Navigate Chance, Ignorance, Risk and Luck. By David Spiegelhalter 8-Chokepoints. By Edward Fishman 9-The Corporation in the 21st Century: Why (Almost) Everything We Are Told About Business Is Wrong. By John Kay 10-Empire ofai. By Karen Hao 11-House of Huawei. By Eva Dou Culture and arts 12-Adventures in the Louvre: How to Fall in Love with the World’s Greatest Museum. By Elaine Sciolino 13-Bye Bye I Love You: The Story of Our First and Last Words. By Michael Erard 14-Fatherhood: A History of Love and Power. By Augustine Sedgewick 15-John & Paul: A Love Story in Songs. By Ian Leslie 16-Pronoun Trouble: The Story of Us in Seven Little Words. By John McWhorter 17-Raising Hare. By Chloe Dalton Fiction 18-Among Friends. By Hal Ebbott 19-Beartooth. By Callan Wink 20-The Dream Hotel. By Laila Lalami. 21-Flesh. By David Szalay 22-Let Me Go Mad in My Own Way. By Elaine Feeney 23-Ripeness. By Sarah Moss 24-Theft. By Abdulrazak Gurnah. 25-Twist. By Colum McCann 26-We Do Not Part. By Han Kang History 27-38 Londres Street: On Impunity, Pinochet in England and a Nazi in Patagonia. By Philippe Sands 28-The cia Book Club: The Best-Kept Secret of the Cold War. By Charlie English 29-The Einstein Vendetta: Hitler, Mussolini and a Murder That Haunts History. By Thomas Harding 30-Jesus Wept: Seven Popes and the Battle for the Soul of the Catholic Church. By Philip Shenon 31-The Last Days of Budapest. By Adam LeBor 32-Peak Human. By Johan Norberg 33-Strangers and Intimates: The Rise and Fall of Private Life. By Tiffany Jenkins 34-The Third Reich of Dreams: The Nightmares of a Nation. By Charlotte Beradt Politics and current affairs 35-The Party’s Interests Come First: The Life of Xi Zhongxun, Father of Xi Jinping. By Joseph Torigian 36-Righting Wrongs: Three Decades on the Front Lines Battling Abusive Governments. By Kenneth Roth 37-Russia’s Man of War: The Extraordinary Viktor Bout. By Cathy Scott-Clark Science and health 38-Doctored: Fraud, Arrogance and Tragedy in the Quest to Cure Alzheimer’s. By Charles Piller 39-Is a River Alive? By Robert Macfarlane 40-More and More and More: An All-Consuming History of Energy. By Jean-Baptiste Fressoz 41-Waste Wars. By Alexander Clapp.

- Pedro

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A Fresh Perspective on Perfectionism, Inspired by HBR Ideacast

A Fresh Perspective on Perfectionism, Inspired by HBR Ideacast I recently listened to a thought-provoking episode of HBR Ideacast featuring Dr. Ellen Hendriksen, which explores how to understand and manage perfectionism. The episode draws on insights from her book How to Be Enough—a read I highly recommend. For me, the conversation was eye-opening. It prompted a fundamental shift in how I approach perfectionism. Why? Because it led me to revisit the first principles behind this often misunderstood mindset. Here are a few key takeaways: -Perfectionism isn’t about wanting everything to be flawless. Rather, it stems from overvaluing performance—viewing outcomes in binary terms (success or failure) and tying one’s self-worth to results. -It’s often driven by a positive trait: conscientiousness. This includes a strong sense of responsibility, diligence, a desire for excellence—all admirable qualities. However, when unchecked, they can push us beyond the point of diminishing returns. In essence, perfectionism arises when our conscientiousness compels us to keep refining or reworking something—whether it’s a report, decision, or assessment—even when further effort no longer adds value. In other words, when we ignore the “good enough” principle. Reflecting on my own habits through this lens, I recognize that I often struggle to draw that line. More than once, I’ve spent excessive time on tasks that, in hindsight, didn’t warrant it. To address this, I’m adopting a simple rule: Before continuing to improve a piece of work, I’ll ask myself—Is this already good enough for the purpose it serves? Lastly, if a recruiter asks me about my biggest weakness, I may still say "perfectionism"—but now, I can explain it with a deeper, more nuanced understanding of what that means and how I’m working to manage it constructively. https://podcasts.apple.com/es/podcast/hbr-ideacast/id152022135?i=1000683028403

- Pedro

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Book Review – The Fifth Risk, by Michael Lewis | Rating 3/5 | Qualitative: I liked it

Book Review – The Fifth Risk, by Michael Lewis Rating: 3/5 Qualitative: I liked it "There is an upside to ignorance and a downside to knowledge. Knowledge makes life messier—it makes it a bit more difficult for a person who wishes to shrink the world into a worldview." The Fifth Risk carries all the hallmarks of a Michael Lewis book: sharply written, engaging, and built around a compelling story. As expected, it’s both entertaining and accessible, with a strong narrative arc that makes for a seamless reading experience. If I’m not mistaken, this is the third book I’ve read by Lewis (after Moneyball and Flash Boys), and I still have a couple more on my shelf. This one did not disappoint. The book explores the early ethos of the Trump administration, revealing—through personal stories and concrete examples—the widespread chaos, unpreparedness, and lack of competence that defined many parts of the transition & the ensuing 4 years. It portrays a culture marked by ignorance, arrogance, and a disregard for knowledge, values, and fundamental governance principles. Lewis structures the book around five main areas: the transition process itself, the titular “fifth risk” (tail risk), the degradation of public-sector talent (people risk), and the mismanagement and commodification of public data by private interests—often through crony capitalism. In essence, The Fifth Risk refers to the kind of organizational decay that happens when long-term risks are routinely met with short-term, simplistic solutions—solutions that are fast, easy, and often wrong. It’s what occurs when systems fail to attract and retain the best minds, when the wrong people are promoted or celebrated, and when technical knowledge and scientific rigor are steadily eroded. The result is a weakened capacity for innovation and long-term planning. At the root of this failure is a lack of vision, purpose, and investment in critical public functions. Lewis illustrates how decisions with lasting consequences were made by individuals who lacked the necessary skills, understanding, or ethical grounding to make them responsibly. The book walks us through specific examples across several departments, including the Department of Energy, the Department of Agriculture, and the National Oceanic and Atmospheric Administration (NOAA), showing the human and institutional costs of mismanagement. It’s worth noting that the book was written in 2018, yet it resonates deeply in 2025—perhaps even more so now. While one could argue that there is another side to this story, even if only half of what Lewis reports is accurate, the implications are sobering. The damage described may take years to fully undo. For anyone seeking to better understand the state of public institutions—and the broader risks that come from neglecting them—this book is essential reading.

- Pedro

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Book Review – The Pricing Roadmap, by Lehrskov-Schmidt | Rating: 3.5/5 | Qualitative: I really liked it

Book Review – The Pricing Roadmap, by Lehrskov-Schmidt Rating: 3.5/5 Qualitative: I really liked it As part of a book club (#BOP) that I’m a member of, I was invited to read The Pricing Roadmap a few weeks ago. I must confess: when the title was selected, my expectations were low—borderline apprehensive. I feared this might turn out to be “wasted” time. But, having committed to the group, I dove in—albeit reluctantly. To my surprise and delight, this journey turned out to be anything but a waste. This book offers tremendous value—not only for pricing professionals in B2B SaaS, but for anyone working in pricing or revenue management. Lehrskov-Schmidt writes as a seasoned practitioner. The concepts he presents are not just theoretical; they’re battle-tested and grounded in real-world experience. His approach is highly practical, yet anchored in solid theoretical frameworks that prompted me to pause, reflect, and reconsider some of my long-held assumptions—both in familiar areas and from entirely new angles. A particular highlight for me was his use of Clay Christensen’s “Jobs to Be Done” framework, which immediately caught my interest and added depth to the discussion. Key Learnings & Takeaways: Pricing is inherently complex—but that doesn’t mean your customers need to experience it that way. The value lies in the pricing structure, not the price point. Don’t just price the product—price the customer. Invest in designing a pricing process that enables segmentation through product packaging and pricing metrics. Understand your business’s economies of scale, which can provide a sustainable competitive advantage by keeping profits above your weighted average cost of capital (WACC). A business can scale through: Unit Sold Unit Price Unit Cost Each of these can reveal different scalability patterns—linear, critical mass, and diminishing returns. Unit cost decreases with volume—up to a point, per Economics 101. Unit price or network effects reflect increasing product value as user numbers grow. Units sold can drive down selling costs as customer numbers increase. Pricing strategy should align with scale patterns and always be grounded in overall business strategy. The CUPID framework (Customers, Users, Products, Iteration, and Distribution) helps define key product attributes and stakeholders, guiding the pricing process. Two key concepts tied to the product model: Fencing (akin to segmentation, aligned with Jobs to Be Done) Laddering (the customer journey within a segment—enhancing and monetizing value) Every pricing model should contain: The mechanism that determines what the customer pays A structure for differentiating prices across segments Pricing mechanics are based on pricing metrics, which should meet these criteria: Operational viability Relevance in the customer value chain Willingness to pay and fairness Metric density and monetization clarity Metric density stood out to me: your pricing metric should be unambiguous and tightly aligned with customer value. Wallet structure is a fascinating (though challenging) concept—tailoring your value proposition to multiple stakeholders within a customer to unlock monetization opportunities. Price points are relative, influenced by competitors and customer sophistication. Anchoring strategies include: Cost-based Niche-based Perceived value-based Fair value-based Establish a clear discount structure, distinguishing between structural and sales-driven discounts—governed by clear rules. Raising prices should be demystified. Treat it as a normal part of doing business—communicate clearly, transparently, and consistently. If this has sparked your curiosity, I recommend checking out the author’s https://www.youtube.com/@SaaSPricing for further insights into his thinking. This book may not have the hype or social media buzz of more mainstream titles, but it’s a must-read for anyone serious about pricing and revenue management. Hope you enjoy it as much as I did. (text revised by a LLM)

- Pedro

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Book Review – A Sense of Urgency by John P. Kotter | Rating: 4/5 | Qualitative: I really liked it.

Book Review – A Sense of Urgency by John P. Kotter Rating: 4/5 Qualitative: I really liked it. This book had been on my reading list for several years—one that consistently piqued my curiosity and interest. Yet, for one reason or another, it was never the book I selected next, each time I faced that familiar decision (a choice I make roughly 25 times a year). Given this long anticipation, the bar was set high by the time I finally picked it up in March 2025. I’m happy to say it not only met but exceeded my expectations. This is one of the few business books I’ve read recently that I truly enjoyed. It resonated deeply with me—both in how it framed the context and in the practical value of the principles and recommendations it sets forth. Its lessons are highly applicable to day-to-day professional life and relevant across all types of organizations. Kotter explores the persistent need for change that organizations must embrace in order to thrive—or even survive—in an increasingly competitive landscape. Typically, “change” is addressed only in times of crisis, whether driven by internal dysfunction or significant external disruption. However, as Kotter aptly points out, the need for change is a constant. It must be proactively embraced, enabled, and managed to avoid or minimize the spread of what he calls the "complacency virus"—a condition that often stems from past successes and leads, sooner or later, to the very crises organizations hope to avoid. To counteract this, Kotter argues that a true sense of urgency must be cultivated. This means more than just reacting to problems or appearing busy—it means eliminating both complacency and false urgency. The latter misdirects energy toward unproductive meetings and meaningless activity that generates motion without progress. A genuine sense of urgency must be embedded in the everyday rhythm of the organization—not just activated during moments of survival. It includes: A clear understanding of the organization’s risks, opportunities, strengths, and weaknesses. A compelling plan to address these challenges and break free from the status quo. A vision supported by an actionable strategy and effective tactics to build the necessary capabilities. Relentless communication of that vision and strategy. Empowerment of every individual to act within their sphere of influence. The first step in this journey is recognizing and addressing complacency, which may already be deeply rooted in your organization. This involves identifying its sources, watching for red flags, and engaging in honest self-assessment. Kotter provides vivid examples that will likely resonate with your own experiences. To instill real urgency, the author proposes one core strategy supported by four enabling tactics: Strategy: Each organization must define its own strategy, grounded in solid analysis and ambitious yet logical goals. But this strategy must also stir emotions—winning hearts and minds. It should be uplifting, exciting, and personally meaningful. To achieve this, leaders must share key facts and construct a logical, emotionally compelling case that drives engagement. The Four Tactics: Bring the outside reality in—ensure external realities are part of every conversation. Lead by example—demonstrate urgency in your own behavior. Identify and seize opportunities that arise from crises. Confront the “NoNos”—those persistent resistors—relentlessly. For further insights and actionable takeaways, you’ll need to read the book yourself—which I strongly recommend. This is a book I’ll keep in my “petit” library, as I know I’ll return to it time and again throughout my professional life.

- Pedro

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Reseña - El hombre en busca de sentido por Viktor E. Frankl

He terminado El hombre en busca de sentido por Viktor E. Frankl Mi valoracion - 3/5 (Qualitativa - “Me ha gustado”) Un testigo en primera persona de la experiencia humana que muchos han pasado en los campos de concentración durante la Segunda Guerra Mundial. Frankl (neurocientífico y psiquiatra) describe, de una forma humana (física y psicológica), aquello que ha vivido y que le ha permitido desarrollar una de las principales ramas de la psicología: la logoterapia. Esta se basa en la capacidad de una persona para afrontar sus problemas, traumas y situaciones difíciles mediante la búsqueda de sentido (logos), permitiéndole así reorientar su enfoque para vivir una vida más plena. Me resultó muy difícil, dada la distancia que tengo respecto a esa realidad tan tenebrosa, conceptualizar que lo que estaba leyendo fue una realidad concreta para millones de personas hace 80 años, y todo ello únicamente por profesar una determinada religión y cultura. Es especialmente impactante cómo tantas personas con vidas acomodadas, intelectualmente activas y reconocidas por su comunidad, tanto a nivel nacional como internacional, pasaron de un momento a otro a ser tratadas como una especie subhumana, con todas las consecuencias que eso implicó. Todo ello debido a una ideología y a un hombre (lunático) que logró dominar y someter a una sociedad tan fuerte y libre como la alemana. La capacidad del ser humano para adaptarse a las circunstancias más exigentes y mantener su dignidad y sus estrategias de supervivencia es el hilo conductor del libro. Esto permitió al autor desarrollar su teoría, que se basa en la idea de que el hombre solo será pleno y capaz de vivir una vida completa en la medida en que pueda encontrar y dar sentido a su existencia. Es uno de esos libros que resuenan y seguirán resonando en tu cabeza después de haberlo leído. Lo recomiendo mucho, tanto por la historia y el relato personal como por las enseñanzas que puedes aplicar en las más diversas áreas de la vida. (texto revisado por LLM) https://www.goodreads.com/review/show/7325429590

- Pedro

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Speed, Strategy, and Talent: The Story Behind Ford’s Le Mans Victory

A film I recently watched about Ford’s bold bet and its race to win the 24 Hours of Le Mans. It’s a highly engaging movie that tells a fascinating story while illustrating how clear goals, a solid strategy, strong leadership support, and—above all—the right people and talent can turn the seemingly impossible into reality. As a bonus, it also highlights the role Goodyear’s technology played in making it all happen. If you’re a fan of cars, motorsport, and great storytelling, this is definitely a film worth watching. (text revised by a LLM) https://www.imdb.com/title/tt1950186/ https://www.primevideo.com/detail/0G0ZJRP5IMCAV5729ZXNRCIP8M/ref=atv_dp_share_cu_r

- Pedro

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AI and Traffic Flow: Innovation, Emissions, and the Google Factor

An initiative by Google and the city of Manchester aims to use AI to dynamically regulate traffic lights across the Greater Manchester region. This is a great use case for AI technology, as studies show that 50% of car emissions at traffic intersections come from vehicles stopping and starting. Based on previous experiences in Brazil and India, traffic flow is expected to improve by up to 30%, while emissions could decrease by up to 10%. The only caveat is that, after reading The Age of Surveillance Capitalism by Shoshana Zuboff (https://www.goodreads.com/review/show/6776829635), I’m always looking for the catch—questioning what Google stands to gain beyond the explicit use case. In this particular instance, the implications seem both obvious and concerning. That said, opportunities like this should be explored and supported. However, we must remain vigilant and ensure that the inevitable data surplus we provide to companies like Google is not misused. (text revised LLM) https://content1.avplayer.com/6536783932d8a8365a0842d9/videos/65367e747ebff164c504fe60/65367e87c1aacf127d085a34/video.mp4?AV_TAGID=65367eb2aacb313497060747&pid=6536783932d8a8365a0842d9&cid=65367e8906c29393c30221d6&AV_TEMPID=65367eb2bc7bf3bcc50e2584&AV_PUBLISHERID=6536783932d8a8365a0842d9&av_qd1=6536806d667c2a96db026742&videoId=65367e747ebff164c504fe60

- Pedro

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Van Gogh’s Sunflowers—in LEGO form!

Van Gogh’s Sunflowers—in LEGO form! This is exactly why LEGO remains at the top of its game. You can build your own Van Gogh masterpiece, enjoy the process like a kid (or with your kids), and then hang it up as a unique piece of art—two for the price of one! Already added to my wishlist—check it out! (text revised by a LLM) https://www.lego.com/en-us/product/vincent-van-gogh-sunflowers-31215

- Pedro

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Tiny Desk Concerts: My New Musical Obsession

Probably it took me too long, but a couple of weeks ago, I discovered NPR Music’s Tiny Desk Concerts on YouTube—and what a treat! These 20-minute performances feature a variety of artists in a cozy setting that makes you feel connected to the music on a whole new level. I’m completely hooked! Whenever I want to relax, escape, and enjoy great music, this is my go-to. Below is a link to one of my favorites with Sam Smith, but the best part is that there are countless performances to explore, so you can find the ones that suit your taste. Hope you enjoy them as much as I do! (text revised by a LLM) https://youtu.be/L_BHC2l30pY?si=-LhK85mVf48fMmTL

- Pedro

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Escaping into Books: The Power of Reading and Reflection

It's no big surprise to me, but it turns out books and libraries have a positive impact on readers' lives. I’m always a bit skeptical of such studies, but I couldn’t resist this confirmation bias once I saw it. 🙂 I must admit, I love reading but rarely visit libraries—something I plan to change this year. For me, the main benefits of reading are: - It transports me to different worlds and perspectives. - It helps me escape the present moment and take a long-term view on topics. - It expands my knowledge and broadens my horizons. - It fosters personal growth and self-reflection. - It allows me to engage with my thoughts and enjoy solitude. As for the study, it suggests that libraries: - Help people feel calmer and more at peace. - Prepare individuals for the complexities of the world. - Serve as valuable sources of knowledge. - Support personal growth and development. When was the last time you visited a library or picked up a book? Give it a try—you might just enjoy it. (text revised by a LLM) https://lithub.com/its-official-research-has-found-that-libraries-make-everything-better/

- Pedro

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No te Pierdas Aprendemos Juntos 2030: Inspiración y Aprendizaje en Cada Charla

Aprendemos Juntos 2030" es una iniciativa de BBVA que no te puedes perder por su calidad, diversidad y la impresionante trayectoria de sus invitados, quienes aportan conocimiento y experiencia única. He visto muchas charlas sobre diversos temas y ninguna me ha decepcionado. Si ya no sabes qué ver en tus plataformas de streaming, échale un vistazo y aprendamos juntos (texto revisado por un LLM) En BBVA creemos posible una vida mejor en un mundo más sostenible y queremos ofrecerte las herramientas para enfrentar los grandes retos del futuro. En este canal descubrirás las historias más inspiradoras y los contenidos más útiles para afrontar tu día a día, animándonos a luchar por una sociedad más inclusiva y respetuosa con el planeta. Suscríbete y no te pierdas todas nuestras novedades, ¡te esperamos! https://www.youtube.com/@AprendemosJuntos/featured

- Pedro

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Review > Value First, Then Price: Building Value-Based Pricing Strategies

Finalized Value First, Then Price: Building Value-Based Pricing Strategies by Andreas Hinterhuber (editor), Todd C Snelgrove (Editor) My Book Rating - 2.5/5 (Qualitative - between "Okay" and "I Liked It”) BOP#3 - Book Club The book explores the relevance and importance of a value-driven organization through multiple lenses: (i) pricing, (ii) procurement, (iii) management, and (iv) change management. It comprises 25 individual pieces—including interviews, essays, use cases, and empirical evidence—written by various authors. These contributions emphasize the importance of understanding value, its relevance, and how to effectively quantify and communicate it both internally and externally. As a whole, the book serves as a solid introduction and refresher on the significance of being a value-driven organization in any industry. It encourages readers to focus on the value they generate for customers and consumers. It also provides a great starting point for deepening your knowledge of value-based approaches and opens multiple pathways for further exploration.A recommended read for professionals in pricing, sales, and procurement, offering insights on how they can apply these principles within their organizations. A word of caution: Avoid the Kindle edition. While it is technically readable on a Kindle, the formatting has not been properly adapted to the platform. As a result, many of the Kindle’s features and readability enhancements are missing, significantly diminishing the overall experience and value. (text revised by a LLM) https://www.goodreads.com/review/show/7110863649

- Pedro

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Acabei O Tigre Branco por Aravind Adiga, Alice Rocha (Tradutor) -> A minha avaliação- 3/5 (Qualitativa - “Gostei”)

Acabei O Tigre Branco por Aravind Adiga, Alice Rocha (Tradutor) A minha avaliação- 3/5 (Qualitativa - “Gostei”) Um livro de leitura muito fácil que nos narra a história de Balram Halwai (também conhecido como Munna), um empreendedor indiano, e que nos transporta pela sociedade indiana do início do século XXI (>2010). A história de Balram é apenas um meio para nos apresentar a sociedade indiana atual e que, no meu caso em particular, nos faz entrar numa realidade que desconhecemos ou que tínhamos esquecido, sendo difícil de compreender ou até mesmo conceptualizar. Este retrato da sociedade indiana é direto, duro, assertivo, crítico e claro, identificando as disparidades e idiossincrasias chocantes que, ainda hoje, subsistem no maior país do mundo. Confesso que tinha um conhecimento relativo da importância e relevância das castas durante o século XX (por outro livro que li, do qual não me recordo o título nem o autor), mas não tinha a perceção (ou estava muito esquecida, e este livro fez reavivá-la) de todas as disparidades que ainda persistem neste país com mais de 1,5 mil milhões de cidadãos. Por vezes, este choque com a realidade, proporcionado pela leitura de livros como este, permite-nos perceber as diferenças culturais a que cada um de nós está exposto desde pequeno e que, direta ou indiretamente, nos influenciam na vida pessoal e profissional, criando uma diferença cultural que devemos considerar para compreender melhor aqueles com quem interagimos. Aconselho vivamente a sua leitura para conhecer uma realidade tão diferente da nossa (europeia) e, assim, promover o conhecimento de outras culturas e realidades, ampliando a nossa visão do mundo. (texto revisto por um LLM) https://www.goodreads.com/review/show/7255189611

- Pedro

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Beyond the 60/40 Rule: How Merton’s Theory Optimizes Asset Allocation

A brilliant article by The Economist explores probabilities, risk management, and investment strategies for your hard-earned savings. In a simple, insightful, and compelling way, it revisits a half-century-old investment theory by Robert C. Merton, based on his paper "Lifetime Portfolio Selection Under Uncertainty: The Continuous-Time Case." Merton’s model challenges the traditional 60/40 portfolio rule, instead advocating for an optimal asset allocation based on an investor’s individual risk aversion. Using the Constant Relative Risk Aversion (CRRA) utility function and your risk aversion, his framework determines the ideal split between high-risk assets (stocks) and safe assets (bonds) to maximize returns. In essence, Merton suggests that the percentage allocated to risky assets should be equal to their excess expected return over the risk-free alternative, divided by both personal risk aversion and the square of the risky asset’s volatility. This approach leads to a more dynamic asset allocation, adjusting as these variables change. Take a few minutes to digest this—I'll need more than a couple myself. While the theory offers a sophisticated and theoretically sound approach, applying it in practice is not straightforward. It requires precise estimations of key variables and may involve positions that some investors are unwilling or unable to take (such as short-selling). Additionally, one must be aware of and willing to accept the underlying assumptions and trade-offs. Interestingly, studies suggest that this investment strategy has stood the test of time, potentially delivering a significant premium over the conventional 60/40 approach. I must admit that, despite holding an MSc in Finance, I had never come across this theory before. It has certainly piqued my interest, and I plan to explore it further to see if it can be applied to my portfolio management. Hope you enjoy the article as much as I did! (text revised by a LLM) How much happiness does money buy? https://www.economist.com/christmas-specials/2024/12/19/how-much-happiness-does-money-buy from The Economist

- Pedro

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What Must Be True: Strategic Thinking for Managing Risk

Roger Martin, former Dean of the Rotman School, has written a fascinating and insightful article about risk management, emphasizing that a robust strategic process is the only effective way to approach it. Martin argues that, in most cases, risk management conducted by corporate boards often amounts to little more than box-ticking to comply with the Sarbanes-Oxley Act (S-OX) Section 404. This requirement, enacted after scandals like Enron and WorldCom, has become a lucrative exercise for consulting firms but provides little real value to management or investors. Instead of addressing critical risks, these efforts often generate exhaustive lists of potential risks (as seen in typical 10-K filings), which serve as "safe harbor" statements for management rather than actionable insights. A more effective way to approach risk management is by applying the Rumsfeld Risk Matrix (as illustrated in the accompanying graphic). This matrix divides risks into four quadrants: 1.Known Knowns – Risks we are aware of and understand well enough to measure and manage. 2.Known Unknowns – Risks we recognize but do not fully understand. 3.Unknown Knowns – Risks we are unconsciously aware of but fail to identify as risks. 4.Unknown Unknowns – Risks we are entirely unaware of. The ultimate goal of risk management is to increase awareness, turning unknowns into knowns, and improving precision by addressing uncertainties. This involves identifying key risks that are not fully understood, assessing their material impact and likelihood, and investing in understanding them better. It also requires implementing systems to monitor risks that might not be obvious and to uncover entirely new risks. So how is this achieved? The answer lies in a strong strategic process. A well-designed strategy explicitly considers what must be true (WWHTBT) for success and potential derailment, addressing factors such as industry dynamics, customer behavior, organizational capabilities, competitor actions, vendor dependencies, and technological advancements. By conducting thorough internal (IFE) and external (EFE) factor evaluations, along with a comprehensive SWOT analysis, organizations can identify key risk factors, enhance awareness, and improve their ability to detect unknown risks early. This article offers valuable insights and is highly recommended for anyone interested in strategic risk management. (text revised by a LLM) https://rogermartin.medium.com/risk-management-strategy-59869afd3558

- Pedro

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Hermanos Gutiérrez - Musica

Mi ultimo descubrimiento musical! Son buenísimos! https://open.spotify.com/artist/73mSg0dykFyhvU96tb5xQV?si=T9FfR1yVTu27j2VWVOipcw

- Pedro

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Books read throughout 2024! not a bad year

Throughout 2021 I’ve read 21 books, 5.745 pages and my average rating was 3.5 on Goodreads. The full list was the following: 1.Disciplina sin lágrimas 2.Até ao fim 3.The BlackSwan 4.A brief history of time 5.Raving Fans 6.Price and peace 7.Obvious Adams 8.Fascim 9.Os Ratoneiros 10.The secret language of competitive intelligence 11.Do dice play God 12.Strategy beyond the hockey stick 13.How to take smart notes 14.How to decide 15.The pyramid principle 16.12 rules for life 17.Deus na escuridao 18.The tipping point 19.Value-Based pricing 20.Win, keep, grow 21.Sobre la brevedad de la vida Hope 2025 i will make it to 25, but the most important is that i pick good ones, learn and enjoy myself in the journey. https://www.goodreads.com/user/year_in_books/2024/71159677

- Pedro

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How Math Connects Fireflies, Clocks, and Computing

A fascinating video featuring Steve Strogatz explores the power of mathematics and how it reveals hidden patterns in the world that would otherwise remain undiscovered. In one example, Strogatz discusses a study where he and his colleagues explained why fireflies begin flashing in unison. This phenomenon, initially thought to be purely biological, was redefined as a mathematical problem. Building on these findings, engineers developed a method to synchronize small electronic clocks, demonstrating how the mathematical principles from the study extend to fields like distributed computing and sensor networks. Mathematical abstraction—a cornerstone of mathematical reasoning—strips away irrelevant details, allowing us to focus on the fundamental elements of a problem. This approach uncovers connections and commonalities across diverse phenomena and scientific disciplines. I hope you enjoy the video as much as I did! (text revised by a LLM) https://youtu.be/kV-pnbtfraE

- Pedro

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