What Adam Smith meant by 'It is not from the benevolence of the butcher that we expect our dinner'

What Adam Smith's invisible hand means — self-interest drives collective benefit

Self-interest in free markets leads to societal prosperity

What the endowment effect causes — you value what you own more than what you don't

The endowment effect leads to overvaluation of owned items compared to identical alternatives

What Graham's net-net strategy is — buy stocks trading below net current asset value

Graham's net-net strategy: Buying stocks with price below net current assets

What is the principle of Pareto efficiency in welfare economics and how does it relate to the concept of market equilibrium?

Pareto efficiency ensures no welfare improvement without disadvantaging others, aligning with market equilibrium where no trades can make someone better off without harming others

What the labor theory of value claims — the value of a good equals the labor required to produce it

Labor theory posits: Good's value equals production labor

What Buffett means by 'Only when the tide goes out do you discover who's been swimming naked'

Exposes investors' lack of prudent risk management