Category: amazon-pollycast

Occam’s Razor: Law of parsimony

Occam’s Razor

Occam’s Razor is a classic problem solving principle and mental model. This concept is named after William of Ockham, an English friar, theologian, and philosopher and refined by many great thinkers of out time. So what is it?

When choosing alternate hypothesis, always go with the fewest number of necessary assumptions as it’s easier to prove/disprove the hypothesis. This is similar to following critical path in project management for an outcome.

When so many outstanding variables and assumptions in each of our critical decisions in business, money and finance exists, taking an Occam’s Razor approach to determine our course would make the most sense.

If you want to learn more on where all Occam’s razor could be applied check out Farnham street

Wisdom for Joy

There is no real recipe for joy, but helpful wisdom do exist. Following the right wisdom as recipe do help cultivate joy.

Wisdom for joy

Do what feels right for you, regardless of what others say. This is not reckless or arrogance but essential for your joy. It’s not your job to please everyone or expecting yourself to be perfect.

Rest often as necessary. Prioritize your well-being. Enjoy your food without guilt. Listen to your body. Get outside. Establish healthy boundaries. Give yourself permission to need others. Seek out the places and the people that make you feel most alive.

Phantom Equity

As Wikipedia calls it, Phantom stock is a contractual agreement between a corporation and recipients of phantom shares that bestow upon the grantee the right to a cash payment at a designated time or in association with a designated event in the future, which payment is to be in an amount tied to the market value of an equivalent number of shares of the corporation’s stock.

In layman terms, its a percentage of proceeds or dividends if the company gets sold. But why offer or take Phantom Equity?

Phantom 2

Phantom Equity are offered by Business Owners when they hire a CEO. This is most often similar to Royalty. When a company is already making millions of dollars in revenue, it makes more sense for a business owner to offer phantom equity than equity unless they believe they’ll sell the company in future. If you’re a CEO, and when you take phantom stocks, you don’t actually own the business but you do get many perks that comes out of the equity.

Being a CEO is a demanding job and very stressful, they are many times part of a Bad Dad’s club. If somebody doesn’t understand phantom equity, it is actually a negative incentive.