Lattice work is the blinder presented by one of the Wall Street greats Robert Hagstrom, by going through this book one can clearly understand how a complex financial markets work and can explore new ways of investing. Hagstrom takes the reader to a pleasant ride where he introduces basic concepts from physics, biology, social science, literature, psychology, philosophy etc. and explains how one can make effective decisions by broadening their horizons.
LATTICE WORK OF MENTAL MODELS
This hierarchy may look good but it’s upto the individual to find a right correlation exists that between them.He means to say that an individual may posess tons of cognizance but at the end of the day if he cannot find the right connectivity or match that exixts between whatever he read and whatever he may be doing then he should be ready to face the music.
In this chapter the author has a traditional view about the financial markets and introduces the concept of equilibrium to justify his stands.
It’s all about evolution which is happening consistently thus presenting the undying fact that complex adaptive system outweighs the concept of equilibrium.
One can understand about the behavior which an investor exhibits in a group and what adverse effects that it would bring in to an economy because of collectivism.
It is the sentiments that take the center stage where the author describes the global financial system to a network of nodes connected together and states that a failure in a node would cause dynamic changes to the entire system.
LITERATURE & PHILOSOPHY
Both these chapters share some common views, Hagstrom emphasizes the important aspect of thinking in order to gain worldly wisdom and lets the reader to know that apart from the learning’s imparted through curriculum it is increasingly important to develop profound diversified basket of knowledge.
For an individual to come up with an effective decision in this rapidly changing ambience he should possess eclectic mix of knowledge so that the model he builds is robust and reliable. We can see from the graph that decision making overlays all the other concepts discussed in this book.
I have also shown in nutshell what this book would be all about.
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Link to This Resource: Latticework-A New Way of Investing by Robert Hagstrom (Book Review)http://richard-wilson.blogspot.com/2009/06/latticework-new-way-of-investing-by.html