To become a great investor, focus on a multidisciplinary mindset (become a generalist).
"Most of us study something specific and don’t get exposure to the big ideas of other disciplines. We don’t develop the multidisciplinary mindset that we need to accurately see a problem."
"Most of us study something specific and don’t get exposure to the big ideas of other disciplines. We don’t develop the multidisciplinary mindset that we need to accurately see a problem."
"An engineer will often think in terms of systems by default.
A psychologist will think in terms of incentives.
A business person might think in terms of opportunity cost & risk-reward.
Through their disciplines, each of these people sees part of the situation."
A psychologist will think in terms of incentives.
A business person might think in terms of opportunity cost & risk-reward.
Through their disciplines, each of these people sees part of the situation."
Applying a "multidisciplinary mindset" forces inspiring portfolio managers to have knowledge in psychology & human behavior, ancient & modern history, fundamental securities analysis, accounting, macroeconomics, experience in negotiating, running a business, and so much more.
We've all heard of stories where successful entrepreneurs — specialists in specific areas — have a liquidity event & decide to manage their own wealth.
The results are disastrous, where net worth is halved.
On specialists: "In short, they have blind spots. Big blind spots."
The results are disastrous, where net worth is halved.
On specialists: "In short, they have blind spots. Big blind spots."
I have tweeted many times on the difference between an entrepreneur (often a specialist) and a portfolio manager or asset allocator (should consider being a generalist).
https://twitter.com/TihoBrkan/status/1414968516462227461?s=20
Entrepreneurs focus on specific business opportunities, management, scaling, growth, etc — vertical specialized thinking.
Investors don't. We focus on allocating capital, diversification, margin of safety, patience, learning from broad fields — horizontal generalist thinking.
Investors don't. We focus on allocating capital, diversification, margin of safety, patience, learning from broad fields — horizontal generalist thinking.
"Specialize, specialize, specialize. Double down on what you're good at and don't worry about your shortcomings."
That is the quickest way to fail as an investor.
It is also the quickest way not to grow in life. Instead, double down on what you're NOT good at. Go broad!
That is the quickest way to fail as an investor.
It is also the quickest way not to grow in life. Instead, double down on what you're NOT good at. Go broad!
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