Warren Buffett & Charlie Munger: Diversification
Billionaire Michael Saylor Explains Why 'Diversification' Is A Terrible Strategy
A
scalar is a quantity that has only magnitude (size), such as mass, speed, temperature, or energy, and does not include any information about direction. A
vector is a quantity that includes both magnitude and direction, such as velocity, acceleration, force, or displacement.
Scalar Definition
A scalar is fully described by a
single numerical value representing its size or amount, with no need for direction.
- Examples of scalars: temperature, length, volume, mass, speed, energy.
- Scalars can be positive, negative, or zero depending on the context.
Vector Definition
A vector is described by
both magnitude and direction—the amount and the way in which the quantity points or acts.
- Examples of vectors: displacement, velocity, acceleration, force, momentum.
- Vectors are often indicated with an arrow—or boldface, such as v—to emphasize directionality.
Key Differences
- Scalar: magnitude only; no direction (e.g., 10 kg of mass).
- Vector: magnitude and direction (e.g., a 5 m/s velocity heading east).
Consumer Price Index
The
Consumer Price Index (CPI) is a widely used economic indicator that measures the average change over time in the prices paid by consumers for a representative basket of goods and services. CPI is calculated and published regularly (typically monthly) by national statistical agencies, using thousands of price samples collected from various types of outlets.
Purpose and Use
- CPI is used to monitor inflation, reflecting how prices are rising or falling for everyday expenses.
- Policymakers, businesses, and households use CPI for economic decisions, wage adjustments, and to index payments like pensions.
- Different versions of the CPI may target specific populations, such as urban consumers or wage earners.
How It Works
- A "market basket" of goods and services is chosen to reflect typical consumer spending (e.g., food, housing, transport, healthcare).
- Prices for these items are tracked over time, and the changes are averaged using weighted significance based on actual spending patterns.
- The annual percentage change in CPI is a primary measure of inflation.
Michael J. Saylor
Michael J. Saylor (born February 4, 1965) is an American entrepreneur and billionaire business executive. He is the executive chairman and co-founder of
MicroStrategy, a company that provides
business intelligence, mobile software, and
cloud-based services.
Saylor was MicroStrategy's
chief executive officer from 1989 to 2022. In 2000, Saylor was charged by the SEC with fraudulently reporting MicroStrategy's financial results for the preceding two years. He later reached a settlement with the SEC for $350,000 in penalties and $8.3 million in personal
disgorgement.
Saylor is a
bitcoin advocate and under Saylor MicroStrategy has spent billions of dollars to purchase over 600,000 bitcoins. In 2024, he paid a $40 million fine to settle a tax fraud suit. He authored the 2012 book
The Mobile Wave: How Mobile Intelligence Will Change Everything. He is also the sole trustee of
Saylor Academy, a provider of free online education.
source:
https://en.wikipedia.org/wiki/Michael_J._Saylor#