The concept of ongoing improvement is a conventional one, but often there is a bit of self-deception around it. Many investment teams fail to examine their filters or engage in post-mortems on a regular basis to evaluate past decisions. By our count, only about 10% of investment teams conduct such after-action analysis. And even those that claim to tend to fall short: They don’t keep careful journal entries when stocks are discussed, purchased, and sold. Behavioral research demonstrates that our minds rewrite history, so careful records are necessary to learn from experience
If you could hop on the elevator with your younger self going into your first day on the job, what would you say? I would probably suggest the motto of the Royal Society – “nullius in verba” – which roughly translates to “take nobody’s word for it.”…In the world of investing, that means constant learning—which entails constant reading. So I would encourage my younger self to read widely, to constantly learn, and to develop points of view independent of what others say and based on facts. Specifically, I would recommend developing the habit of reading. Constantly ask good questions and seek to answer them.
Selling on Amazon can bring long-term risks. You give up community, brand equity, customer data, and customer communication. By selling on the platform, you trade long-term sustainability for quick revenue. By doing so, you give up the compounding benefits of owning your own infrastructure and driving customers to those owned sales channels.
There is no such thing as a one-size-sits-all portfolio, because we all have different time horizons, risk factors, wants and needs and emotional triggers. I figured out what works for me, but only after a lot of trial and error over the last two decades. And lots of mistakes. A skilled advisor is not just someone who knows investments – it’s someone who knows their clients well enough to know what combination of investments will work for each person.
Almost all entrepreneurs believe that they are more valuable than the markets think they are…If they felt fairly valued by the market, they would go and just join…To be an entrepreneur yourself is to have an overestimation of the thing that you know that you think the rest of the world doesn’t.