Principles or Values?

This might be OT but bear with me because I hope it is relevant to Macro Economic Trends and Risks.

Principles and values get confused all the time. In politics, investing, and personal relations.

I just read a “Dear Amy” column, dated January 4, 2022, in the Los Angele Times. One of the letters was from, “Trying to Save Friendships,” about a person who was fully vaccinated and boosted but didn’t like it when her friends asked her to divulge her vaccine status – on principle.

Amy agreed and shared the writer’s “principle” of privacy, I guess, but thought Trying might get kind of lonely because proof of vaccination was now mandated in many places.

What?! In what world does privacy about whether or not you took a vaccine trump the health, welfare and psychic peace of your friends? How does your loss of privacy (dire consequences?) about a vaccine equate with asking a friend to take a chance on their life because they should trust you?!?

Principles are universal and pertain to life or death issues, or things that work or don’t work. Values are opinions and preferences. One doesn’t get to choose principles. They exist, a priori, and are impersonal. Values are style and personal.

When one “has principles,” that “should” mean that they align their values with universal principles, the way the world works, so their life works well. Principles are not “ours.” Values are personal taste, so we can own those.

In the same newspaper, today’s Los Angeles Times, California section, an obituary for Kelly Ernby, read, “a political newcomer who two years ago ran for an Orange County state Assembly seat as a Republican, died this week of Covid-19."

She was 46, cute, energetic–and an activist against Covid-19 vaccine mandates.

She chose “freedom” over safety!!! She didn’t know which was primary! She chose style!

I think more attention needs to be paid to educating people about the subtle differences between principles and values.

How does this relate to investing? I speak for myself because I need to be reminded of the difference between speculation and investing. And staying within my circle of competence. And watching my psychology. What is principle and what is what I want?

For instance, I want to invest in BABA. I want what could be the upside, at this point. However, some people think China is odious and want nothing to do with it. Those are opinions. But the thing for me is that I don’t have the inside knowledge to know whether China is safe for me to invest in.

The First and second laws of money: Don’t lose money. don’t forget: don’t lose money. Also, mind your circle of competence–don’t step outside of it. And then, the difference between speculating and investing. In the first, you think you could make money, and in the second you expect you will. So I need to choose safety and say no to any major investment I’m not sure about.

Believe me, my body and greed want to “go for it!” Only thing is, when I do, I can’t sleep.
I’m not saying I’ll never speculate in BABA, but I need more data points to invest.

Anyway, principles usually involve things that can feel like limits on what we want to do because our ego wants to do what it wants to do. Values are based on our preferences and ego, so, much more likable–but potentially destructive. The trick is to align values with principles. If we get it wrong… :slight_smile:

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Regarding BABA,

The single biggest risk with the company is that the CCP can change the rules at any time. Indeed,they have just demonstrated this. That is the primary reason for BABA’s
loss of market value. The company could be even more constrained by the government.
Investing in Russian companies carry similar risks, and are valued at single digit PEs.
My investing dollars respect rule number one too much to ever be invested in China at this time,anyway. That could change,but would require extraordinary evidence of government change.
Ymmv,but for me the risk of permanent loss is too great.

JK

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I agree. It’s a speculation, at this point.
Whatever is causing Charlie to buy BABA at these prices, I don’t know.
So, I would be coat-tailing–without access to more of his thinking.

Thanks for your thoughts.

P.S.

This post should be dedicated to Charlie and Warren because that’s where I learned whatever concepts i have about investments and speculation.

I’m not saying speculation is bad but it’s important to know the difference and be conscious about it.

Another saying I love is don’t risk anything you need for something you want.

!

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You only need to get rich once, and losing capital on speculation only delays the journey.

JK

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In what world does privacy about whether or not you insert favorite medical procedure here trump the health, welfare and psychic peace of your friends?

Please post a link to your online medical records.

Other side of same coin…

If your friends are doing things that are putting your health, welfare, etc., at risk, you need new friends.

JLC

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Principles are universal and pertain to life or death issues

Hear hear!

An example I often use is that we (most western people) value faster Internet over the lives of poor children. That’s quite clear when we spend $20 extra a month for faster Internet access rather than sending that $20 to UNICEF to “literally save the lives of 5 deep poverty children around the world”. Some people have argued “but I already contribute to charity”, and the answer is “so what?”, that incremental $20 used solely for faster Internet can still save the lives of 5 deep poverty children around the world.

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“An example I often use is that we (most western people) value faster Internet over the lives of poor children. That’s quite clear when we spend $20 extra a month for faster Internet access rather than sending that $20 to UNICEF to “literally save the lives of 5 deep poverty children around the world””

That 20 bucks funds them for a month. What then? There are millions in ‘deep poverty’ around the world. One major problem is you feed them till they are breeding age and they have another six kids whom they can’t afford to feed, and hope that you and your kids will send them money every month so their kids grow up and have six kids each. Often their leaders are plundering the riches of the country with billions stashed overseas.

Tens of thousands are now starving in Afghanistan.

that seldom solves the problems. Unfortunately.

But if it makes you feel good, send your $20 every month. There are also starving elephants according to the whine I hear on TV pleading for bucks to save the elephants. I’d just instantly shoot the poachers. Period. No excuses. Get caught with illegal elephant tusks, you’re dead. Shoot on sight. Shoot from planes. Helicopters.

t

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telegraph
That 20 bucks funds them for a month. What then? There are millions in ‘deep poverty’ around the world. One major problem is you feed them till they are breeding age and they have another six kids whom they can’t afford to feed, and hope that you and your kids will send them money every month so their kids grow up and have six kids each

BULLSEYE!

Giving in the here and now will always give folks a real warm and fuzzy feeling all aglow, but it does NOT solve the problem(s).

If you refuse to go upstream to solve a problem, you will not solve the problem. Downstream, here and now, you can have all the warm and fuzzies you want, but you are NOT solving the problem(s).

What? Go upstream? Actually solve the problem? Too difficult. WAY too difficult. Just admit it. It can’t be solved! Do the downstream warm and fuzzy and smile.

Think: Acute and Chronic.

Acute: Things have worked, but a rough patch has been encountered. (Natural disaster, sickness, economic stress.) Needs immediate aid, just to get over the rough patch. Will be back on the road with some help.

Chronic: This is the way it is. Always has been, and likely always will be, unless the base problem(s) are solved. Might be fixable, but NEEDS work.

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The only difference between principles and values is that principles are collective while values are personal. Neither can be proven.

Take a statement like “All Men are created equal.” This statement is not provable! Take the whole quote:

"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness".

“Self-evident” is circular logic, not proof. Self-evident is faith not fact.

The Captain

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