1/8 Thread: Stupidity
Adam Robinson defined Stupidity as "overlooking or dismissing conspicuously crucial information".
He also identified 7 factors that lead to stupidity. Here are these factors.
Adam Robinson defined Stupidity as "overlooking or dismissing conspicuously crucial information".
He also identified 7 factors that lead to stupidity. Here are these factors.
2/8 Being outside your normal environment/changing your routines.
Being in the presence of a group.
Being in the presence of an expert or if you, yourself, are an expert.
Doing any task that requires intense focus.
Information overload.
Physical or emotional stress, and...
Being in the presence of a group.
Being in the presence of an expert or if you, yourself, are an expert.
Doing any task that requires intense focus.
Information overload.
Physical or emotional stress, and...
3/8 Finally, a sense of urgency.
You don't need all 7 factors for you to lead to stupidity. Even just one can suffice. These factors are additive in nature.
The more factors are at play, the higher your likelihood to fall prey to stupidity.
You don't need all 7 factors for you to lead to stupidity. Even just one can suffice. These factors are additive in nature.
The more factors are at play, the higher your likelihood to fall prey to stupidity.
4/8 All the seven factors are also prevalent in any hospital.
Hospital errors are, in fact, third leading cause of death in the US following cancer and heart disease.
Some 210k-440k people die every year in the US due to hospital errors.
Hospital errors are, in fact, third leading cause of death in the US following cancer and heart disease.
Some 210k-440k people die every year in the US due to hospital errors.
5/8 This also reminds me of another study I came to know about cardiac patients while reading the book "Range".
A study concluded that cardiac patients are less likely to die if they were admitted during a national cardiology meeting.
Why?
A study concluded that cardiac patients are less likely to die if they were admitted during a national cardiology meeting.
Why?
6/8 During the national cardiology meeting, thousands of cardiologists are away from hospitals and "all the common treatments of dubious effect were less likely to be performed."
7/8 Charlie Munger's philosophy of avoiding stupidity deeply resonates with me.
“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”
“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”
8/8 While avoiding stupidity is perhaps not easy, it is certainly easier than seeking brilliance.
I have little doubt that people who can just avoid being stupid will have stellar investing track record over the long-term.
I have little doubt that people who can just avoid being stupid will have stellar investing track record over the long-term.
