Stock Market

The year is 2025. I’m turning 40 soon, sitting in a cramped 450-square-foot apartment with thin walls, $50,000 in credit card debt, and a credit score of 646. My financial worth: $100 in liquid assets. My net worth: deeply negative. Five years ago, I was worth over $7 million. This isn’t a story about market crashes or economic downturns. This is a story about human fallibility—specifically, mine. If you’re looking for a cautionary tale about greed, overconfidence, and the psychological pitfalls of sudden wealth, welcome. I’ve lived it all so you don’t have to.

Our lives unfold through sequences that blend pattern and randomness in fascinating ways. Consider something as mundane as daily walks along familiar routes—while the path itself remains consistent, the precise execution of each step represents an intricate dance of subtle variations that operate largely beneath conscious awareness. The Mathematics of Everyday Movement # These seemingly routine movements contain remarkable complexity when examined closely. If we could precisely measure the biomechanics of walking—foot placement, muscular force application, postural adjustments—we would discover statistical patterns with natural variability distributed across normal probability curves. This blend of consistency and variation characterizes many natural processes.

One of the fascinating realities in the startup ecosystem, particularly within venture-funded companies, is how perception can sometimes outweigh immediate fundamentals in determining valuations. Many founders successfully secure substantial funding at impressive valuations based largely on the promise and potential of future business growth rather than current financial metrics. The Venture Capital Incentive Structure # The venture capital model operates with a distinctive incentive structure. VC firms typically earn revenue through management fees calculated as a percentage of assets under management, with additional performance incentives when investments appreciate in value. This structure naturally encourages pursuit of companies that can rapidly increase in valuation and attract subsequent funding rounds at higher prices.