Five Napkin Drawings About Money, Risk and Behaviour

Published: January 13, 2017 at 8:50 am

Last Updated on September 25, 2019

A napkin drawing is a rough sketch drawn to effectively communicate an idea. It is called a napkin drawing or a back-of-the-envelope sketch because it can be done anywhere. Carl Richard’s napkin drawings are famous and he is an inspiration for me to attempt the same.

A visual representation of a complex fact can be quite convincing. The ideal napkin drawing requires zero context. Unfortunately, mine is nowhere near that good. So permit to offer a sentence or two in explanation. This is my third attempt.

Market Volatility vs Time

Supporting evidence:

Understanding the Nature of Stock Market Returns

Will long-term equity investing always be successful?

Reading patterns of “DIY” Investors?

Visible Wealth vs Invisible Wealth

Visible Wealth = Real Estate, Cars, Watches, Jewels, Expensive Holidays etc.

Invisible Wealth = liquid net worth = stocks, bonds, etc.

Statistics and the Investor

“You are not entitled to your opinion. You are entitled to your informed opinion. No one is entitled to be ignorant.”
Harlan Ellison

Asan Ideas for Risk

Here are my previous two attempts

Visualising the growth of an equity portfolio as a tilted pendulum

Assorted infographics on personal finance

Would you like to share your own napkin drawings?

If you like napkin drawings and have ideas to make some, you can either share the idea or the drawing with me for publication here with due credit.

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About the Author Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association, IIST Alumni Association. For speaking engagements write to pattu [at] freefincal [dot] com
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