“Sometimes a cigar is just a cigar .” - Sigmund Freud ***** CAN YOU SEE A VULTURE? "The Virgin and Child with St. Anne" by Leonardo da Vinci (1503) In a 1910 essay, Freud made a valiant attempt at divining an aspect of the painter Leonardo da Vinci’s personality through the above painting. Freud peered at the picture after tilting his head to the left, and noticed a vulture. Off went Freud on his psychoanalytic jet and concluded that the picture hid an insight into the painter’s life. It seemed to speak volumes about da Vinci’s ‘homosexual’ childhood fantasy. Freud relied on a translation of da Vinci’s writings, apart from the painting, for his interpretation. Only the unforgiving arrow of time would pass true judgment on Freud’s mental frolics. The great man had mistranslated the word for ‘vulture’. The edifice on which Freud’s theory of da Vinci’s sexual fantasies rested was an illusion. Freud apparently considered the essay to be the on...
This edition is about a topic that fascinates me: bidding behaviour. On how people make decisions under conditions of uncertainty. And the notion of ‘rationality’. ***** Many of you participated in a game I played with you recently. (I’m sure you are glad that I didn’t ask you to predict your expiry dates!) An investment prospect offers 100% return potential over your benchmark return (your ‘required return’). How much of this excess return would you be willing to pay/share upfront to participate in the idea? There were no right answers for this ‘buy in’. Only interesting answers. Chart time. Buyin for ‘50%’ represents 50% and above. Participants comprised of finance and non-finance backgrounds. The left bins generally had finance people; who opted for some variant of upfront fee and profit share structures. Many non-finance guys populated the higher bins. Interestingly, several finance folks populated ...