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The Untold Story of Napoleon Hill, the Greatest Self-Help Scammer of All Time

Napoleon Hill is the most famous conman you’ve probably never heard of. Born into poverty in rural Virginia at the end of the 19th century, Hill went on to write one of the most successful self-help books of the 20th century: Think and Grow Rich. In fact, he helped invent the genre. But it’s the untold story of Hill’s fraudulent business practices, tawdry sex life, and membership in a New York cult that makes him so fascinating. 

That cult would become infamous in the late 1930s for trying to raise an “immortal baby.” But even those who know the story of Immortal Baby Jean may not know that the cult was inspired by Hill’s teachings, practically using his most famous work as their holy text. Don’t worry, the whole story of Napoleon Hill only gets weirder from there.

Modern readers are probably familiar with the 2006 sensation The Secret, but the concepts in that book were essentially plagiarized from Napoleon Hill’s 1937 classic Think and Grow Rich, which has reportedly sold over 15 million copies to date. The big idea in both: The material universe is governed quite directly by our thoughts. If you simply visualize what you want out of life, those things and more will be delivered to you. Especially if those things involve money. 

The past few decades have been a profitable era for all sorts of self-help and business success books. Napoleon Hill blazed a trail for an entire industry. But Napoleon’s early work is seen as “the source” when people get deep into self-help and business success literature. Hill’s Think and Grow Rich is passed around in certain business and real estate circles like some kind of ancient text. In fact, when The Secret emerged on the scene in the mid-2000s, countless entrepreneurial writers would pen their own books, pointing to the works of Napoleon Hill as the true basis for what The Secret called the Law of Attraction.

You can see the influence of Hill in everything from the success sermons of Tony Robbins to the crooked business dealings of Trump University. In fact, you can draw a direct line to Donald Trump’s way of thinking through Norman Vincent Peale, an ardent follower of Napoleon Hill. Reverend Peale, author of the 1952 book The Power of Positive Thinking, was Donald Trump’s pastor as a child.

“You always, when the service was over, you said, ‘I’d have sat there for another hour,’” said Trump of Peale. “There aren’t too many people like that. It wasn’t the speaking ability, it was the thought process.”

The legend of Napoleon Hill has grown and morphed over the years. He really did live an extraordinary life, just not the life that his thousands of disciples over the years have claimed. It’s just too bad that Hill spent most of his life as an utter fraud—a fraud who by hook and by crook was constantly reinventing himself.

More here – Paleofuture

The Pot-Belly of Ignorance

What you allow to leak into your head is immensely important.

Increasingly, we’re filling our heads with soundbites, the mental equivalent of junk. Over a day or even a week, the changes, like those to our belly, are barely noticeable. However, if we extend the timeline to months and years, we face a worrying reality and may find ourselves looking down at the pot-belly of ignorance.

More here – Farnham Street

The Irrationality Within Us

We like to think of ourselves as special because we can reason and we like to think that this ability expresses the essence of what it is to be human. In many ways this belief has formed our civilization; throughout history, we have used supposed differences in rationality to justify moral and political distinctions between different races, genders, and species, as well as between “healthy” and “diseased” individuals. Even to this day, people often associate mental disorder with irrationality and this has very real effects on people living with mental disorders.

But are we really that rational? And is rationality really what distinguishes people who live with mental illness from those who do not? It seems not. After decades of research, there is compelling evidence that we are not as rational as we think we are and that, rather than irrationality being the exception, it is part of who we normally are.

So what does it mean to be rational? We usually distinguish between two kinds of rationality.  Epistemic rationality, which is involved in acquiring true beliefs about the world and which sets the standard for what we ought to believe, and instrumental rationality which is involved in decision-making and behavior and is the standard for how we ought to act.

More here – Scientific American

Inside a Moneymaking Machine Like No Other

That’s because the area’s wealthiest residents, scientists all, work for the quantitative hedge fund Renaissance Technologies, based in nearby East Setauket. They are the creators and overseers of the Medallion Fund—perhaps the world’s greatest moneymaking machine. Medallion is open only to Renaissance’s roughly 300 employees, about 90 of whom are Ph.D.s, as well as a select few individuals with deep-rooted connections to the firm.

The fabled fund, known for its intense secrecy, has produced about $55 billion in profit over the last 28 years, according to data compiled by Bloomberg, making it about $10 billion more profitable than funds run by billionaires Ray Dalio and George Soros. What’s more, it did so in a shorter time and with fewer assets under management. The fund almost never loses money. Its biggest drawdown in one five-year period was half a percent.

“Renaissance is the commercial version of the Manhattan Project,” says Andrew Lo, a finance professor at MIT’s Sloan School of Management and chairman of AlphaSimplex, a quant research firm. Lo credits Jim Simons, the 78-year-old mathematician who founded Renaissance in 1982, for bringing so many scientists together. “They are the pinnacle of quant investing. No one else is even close.”

More here – Bloomberg

An Interview With Robert J. Shiller on Behavioral Economics

Warburton: So what you’re saying is that traditional economics has focused on an ideally rational individual, asking, “What would such a person do if he or she behaved in their own best interests based on the information available?” But behavioral economics brings in the fact that we don’t always behave in our own best interests.

Shiller: That’s right. Conventional economics misrepresents what our best interests are. A great example is the financial crisis that began in 2007. The way it began was home prices started falling rapidly. Many people had committed them­selves to mortgages and now the debt was worth more than the house was worth; they couldn’t come up with the money to pay off the mortgage, and it led to a world financial crisis. So why did that happen? Conventional economic theory can’t seem to get at the answer, which I would say is that we had a speculative bubble driven by excessive optimism, driven by public inattention to risks of such an eventuality, and errors in managing the mortgage contracts that were made. There are no errors in conventional economics: it’s all rational optimization.

More here – Pacific Standard

The Psychology and Neuroscience of Financial Decision Making

The Paradox Of Skill

General Advice Warning

The Trading Game Pty Ltd (ACN: 099 576 253) is an AFSL holder (Licence no: 468163). This information is correct at the time of publishing and may not be reproduced without formal permission. It is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs.