The Mind Money Spectrum Podcast

#53. The statistical reality of Buffett's wealth will knock you off your feet.

December 15, 2020 Aaron Agte and Trishul Patel Season 2 Episode 1
The Mind Money Spectrum Podcast
#53. The statistical reality of Buffett's wealth will knock you off your feet.
Chapters
The Mind Money Spectrum Podcast
#53. The statistical reality of Buffett's wealth will knock you off your feet.
Dec 15, 2020 Season 2 Episode 1
Aaron Agte and Trishul Patel

In this episode, Trishul and Aaron provide a quick primer on common and useful statistical methods. Mean, median, mode, standard deviation, bell curves, and so on. With a normal distribution, the mean should equal the median, and the law of large numbers allows you to make inferences between a sufficiently large sample and the overall population. Unfortunately, most things don't behave as "normally" as we would like. And this is where things can get tricky. Even so, maybe Warren Buffett is just a beneficiary of the Wyatt Earp Effect, which is a great reason why you need to understand the fundamentals of statistics before you put your hard-earned money to work in the financial markets.

Episode References

MMS #21. Why the VIX is useless.
Investing Forever - Risk Management 101
Investing Forever - Intro to Vol
Investing Forever - Intro to Histograms
Investing Forever - Nothing Is Perfect
The Wyatt Earp Effect
Random Variable
Sample Size
Population Heatmaps
Random Stock Picking
Difference Between Mean and Median
Skewness
Kurtosis
Warren Buffett says Index Funds are the Best Investment

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Show Notes

In this episode, Trishul and Aaron provide a quick primer on common and useful statistical methods. Mean, median, mode, standard deviation, bell curves, and so on. With a normal distribution, the mean should equal the median, and the law of large numbers allows you to make inferences between a sufficiently large sample and the overall population. Unfortunately, most things don't behave as "normally" as we would like. And this is where things can get tricky. Even so, maybe Warren Buffett is just a beneficiary of the Wyatt Earp Effect, which is a great reason why you need to understand the fundamentals of statistics before you put your hard-earned money to work in the financial markets.

Episode References

MMS #21. Why the VIX is useless.
Investing Forever - Risk Management 101
Investing Forever - Intro to Vol
Investing Forever - Intro to Histograms
Investing Forever - Nothing Is Perfect
The Wyatt Earp Effect
Random Variable
Sample Size
Population Heatmaps
Random Stock Picking
Difference Between Mean and Median
Skewness
Kurtosis
Warren Buffett says Index Funds are the Best Investment

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.