Morgan Housel of the Collaborative Fund posted some interesting observations from a lifetime of investing. Here’s a useful exercise: what if we graded each potential research topic – or our entire research life – from the perspective of a professional investor?
For instance, he notes:
I’ve learned that having your views confirmed is a powerful and addictive drug.
That one surely tells us something about the frailties inherent in traditional hypothesis testing.
I’ve learned that telling the difference between patience and stubbornness is incredibly hard.
I have experienced that one with numerous projects that I refused to drop even when past their “sell by” date.
Almost every one of his points has a similar analogue. Comments are closed but let me know if you find any of Morgan’s views helpful over on Twitter at @abwhitford.