The Wisdom Of Finance (Mihir Desai)

Over the last four decades, the performance of financial markets has brought 1-2 billion people out of poverty and helped level income inequity globally. At the same time, we have witnessed extreme market dysfunction that has resulted in moral and ethical upheavals. Mihir Desai explores how the integration of humanities may be key to reforming markets.

Please watch this 10 min YouTube Video before attending the discussion:
https://youtu.be/Bmbuwc6V5-4?si=ehfdcQaA6oV-A7Al
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Discussion Questions:

1. Risk and Reward: How can we better evaluate which risks are worth taking in our careers or personal development, similar to investment decisions in finance?
2. Diversification: In what ways can we apply the concept of diversification beyond finances, such as in our professional skills or social networks? Are there any potential downsides to diversifying too much?
3. Options and Flexibility: How important is it to keep options open in decision-making processes, both in personal and professional contexts? Can too many options ever become a hindrance?
4. Insurance as a Metaphor: In what ways can we 'insure' ourselves against non-financial risks in life, such as career setbacks or personal failures? What forms of ‘insurance’ might be most effective?
5. Long-term Perspective: Why is maintaining a long-term perspective essential for both financial success and personal growth? How can we cultivate this perspective in a world that often prioritizes short-term results?
6. Compound Interest: How does the idea of compound interest relate to the accumulation of skills, knowledge, or habits over time? What are the practical implications of this concept for personal and professional growth?
7. Principal-Agent Problem: How can organizations, teams, or even families better align their interests to avoid conflicts similar to the principal-agent problem in finance? What are effective strategies to achieve such alignment?
8. Value Creation vs. Value Extraction: What are some examples of value creation versus value extraction in various fields, such as business, education, or community involvement? How can individuals and organizations ensure they are focusing on creating rather than merely extracting value?

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To provide an enjoyable experience for fellow participants, here are three ground rules during discussion events:

1. Step up and step back. (If you feel that you’ve been talking too much, step back to listen more. If you feel that you’ve been relatively quiet, step up to share your perspective or ask a question)
2. Listen to understand, not to respond.
3. Be open-minded and value differences.