Recurring themes in Buysiders.com: skepticism, intellectual honesty, independent thinking and so on. Much easier said than done, of course, especially for one who writes about it. It’s easy to fall into the trap of false knowledge or, in investment terms, unearned convictions. Those can kill you in the long run.
This post is another in this series and it comes from Seth Godin’s “False Metrics” post a few days ago. It’s useful to think about management and incentive systems, but I chose to focus just on the investment angle. A coincidence: I read this post one day after reading a NYT story on “getting smarter faster”. It’s a great example, since there isn’t yet a body of intelligent research on whether one single measure of intelligence is adequate, and whether improving that metric alone correlates to lifelong success and so on and so forth. It could even be true, but at this point it’s an unearned conviction based on potentially false metrics.