Worth 1,000 Words
Worth 1,000 Words
Adam M. Grossman | Aug 2, 2025
IN THE ANCIENT WORLD, before the invention of the printing press, the most common way to retain information was to build what’s known as a memory palace. The idea was to link words to images, because images are easier to remember.
I’ve found that this strategy works well in personal finance, and earlier this year I described some of the images that I rely on most. Below are several more.
1. Back in 2011, an Illinois man named Wayne Sabaj was in his yard when something caught his eye. Upon closer inspection, it turned out to be a package containing a large amount of cash—about $150,000. Sabaj never found out who had buried these funds or why. This sort of thing is not uncommon. Homeowners doing renovations regularly find cash hidden in backyards, basements and bedroom walls.
For me, this is a reminder that many financial decisions are subjective and in the eye of the beholder. To be sure, most people hold their money in the bank, where it’s safe and can earn interest. But not every financial decision has to be strictly optimal.
As I often say, there are two answers to every financial question: what the numbers say and how you feel about it. In my view, as long as a financial decision doesn’t carry undue risk, we shouldn’t worry what someone else might think.
2. You may remember the name Keith Gill, or his alter ego, Roaring Kitty. Gill is the day trader who gained fame in 2021 when he helped drive up the share price of the failing retailer GameStop. That, in turn, caused the failure of a multi-billion-dollar hedge fund which had been betting against GameStop. Gill accomplished all of this from his basement in suburban Boston.
This, in my mind, illustrates a growing phenomenon in the market. It’s what hedge fund manager Cliff Asness refers to as the “less efficient market hypothesis.” The internet, and social media in particular, have spawned what he calls “a coordinated clueless and even dangerous mob.”
That’s in contrast to the long-held belief that investors should benefit from having more information. This year’s resurgence of so-called meme stocks suggests that Asness may be right. This less-than-rational behavior is another reason to take the long view in investing.
3. Tax rules are complicated and change frequently. But there’s one rule that’s easy to remember, thanks to a hapless fellow named Alvan Bobrow. In 2014, Bobrow, a tax attorney, came to the attention of the IRS when an audit revealed he’d taken advantage of the rules governing IRA rollovers. These rules allow an investor who wants to transfer the balance of a 401(k) or IRA to hold the funds temporarily in his or her checking account—but only for 60 days.
TO READ MORE: https://humbledollar.com/2025/08/worth-1000-words/