Thinking about research topics as if they’re investments

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.

Here’s another:

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.