What is the nature of happiness?

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Jim O'Shaughnessy, through a conversation with Jesse Livermore, touches on the nature of happiness by discussing its relation to value. Livermore asserts that value, for a human, equates to happiness, encompassing positive emotion and experience. This perspective suggests that happiness is intrinsically connected to the fulfillment of needs and desires, whether directly through tangible elements like food and shelter, or indirectly through assets that can be traded for what one wants. Happiness, in this sense, is deeply linked to functional utility — the hedonic value derived from an object, whether it's a physical product or an intangible service like software that facilitates goal achievement 1.

Value and Emotion

Jesse Livermore explains that value is happiness, positive emotion, and positive experience. While intrinsic value is the maximum price you would pay to own something if you were bound by law to never be able to sell it, nothing in the market trades at intrinsic value because of emotional or extrinsic value.

Infinite Loops 2022

Ep.91 — Lily Francus and Jesse Livermore — Understanding Financial Bubbles
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