Farnam Street Media is a website focused on continuous learning and mental models for better decision making. It provides a wealth of investment insights through books, articles, podcasts and more. This article will review Farnam Street’s key investment teachings, assessing its value for investors looking to broaden their perspectives.
Farnam Street emphasizes developing mental models for investing
Farnam Street believes developing robust mental models is key to improved decision making and investing. It highlights classic books like The Intelligent Investor that provide timeless insights into investor psychology and market cycles. Farnam Street synthesizes key lessons from these books into easily digestible takeaways for readers. Its emphasis on mental models provides investors a broader lens for analyzing potential opportunities.
Multidisciplinary approach integrating psychology and business
Farnam Street takes a multidisciplinary approach, integrating psychology, business, history and other fields to better understand investing. For example, its article on Benjamin Graham’s psychology of misjudgment analyzes common investor biases and how to avoid them. This crossover perspective gives readers a more nuanced appreciation of markets and human behavior.
HESTIA investment framework helps investors adapt
Farnam Street created the HESTIA investment framework centered on humility, erasing, systems thinking and temperament. This framework helps investors structure their mental models to make flexible, adaptive decisions amidst uncertainty. Farnam Street argues investors need to balance conviction with humility and continuously evolve their perspectives.
Better decision making overall, but light on actionable details
While Farnam Street provides intellectual frameworks for sharpening investment thinking, it does not offer many specific, actionable insights. Readers may come away with a broader perspective but lack tactical takeaways for constructing a portfolio or analyzing individual opportunities. Some may prefer resources with more tangible models and methods.
Farnam Street Media provides intellectual foundations and multidisciplinary mental models to enrich investment thinking, but is lighter on tangible tactics. Its teachings are best paired with resources offering actionable frameworks for analysis.