Principle Theory

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In the world of decision-making, the balance between Darwin and Newton can determine outcomes. While Darwin often reigns supreme, instances where Newton governs are crucial. Concepts like compound interest and incentives are under Newton's domain as they provide consistency and guidance. Elements such as customer preference for low prices, the need for connection, and cultural behaviors are ingrained and report to Newton. The key is understanding when to embrace Darwin's flexibility and when to adhere to Newton's constant principles. To navigate Darwin's influence, it is advised to remain open to new ideas and let go of beloved notions. Additionally, having steadfast principles is vital in both investments and life, though room for flexibility in execution is essential for wise decision-making.

Woodrow Wilson was the only president with a Ph.D. in political science.

He came to office having thought more about how a government functions than most before him or since.

One of his complaints was that too many people in government held the belief that it was a Big Machine: that once you set up a series of rules you could take your hands off the wheel and let the government run on its own forever. They viewed government like physics, with a set of customs and laws that required no updating or second-guessing because they were believed to be precise and perfect as they were.

Wilson thought that was wrong. He viewed government as being a living thing that adapted and evolved.

I really don't care about politics. But he had a theory that I think is so important, and so applicable, to us ordinary people managing our money.