The important thing is not to increase the circle of ability, but to strictly define the boundaries of the circle.
If there is a surefire way to ruin in the investment and speculative world, I think it’s overconfidence in one’s abilities.
It happens that the market is often a series of victories, and it is normal for humans to overconfident in their abilities and take excessive risks, but it seems that there are very many people who have been forced out of the market after that. I think.
Many people in these worlds think that high IQ is the key to success, but Buffett says, “In the game of investment, it is not always possible for an IQ160 person to beat an IQ130 person.”
So what kind of person can achieve long-term success?
In the world of investment and speculation, the temptation to flutter is endless.
To put it simply, stocks of traders, theme stocks, and mini-bubbles in emerging markets.
If these are in the circle of your abilities and you are good at them, there should be no problem, but most of the time, it seems that the result is summer insects that fly into the fire.
It’s human nature to want to get out of the circle of your abilities and suck sweet honey, but it’s well known that the world isn’t sweet enough to keep winning in areas that your abilities don’t reach.
The area of the ring is five times that of a person, but it seems that a person who can strictly determine the boundary of the ring can be wealthier in the long run than a person whose boundary is ambiguous.
“I searched for a 30-centimeter hurdle that I could jump over. I didn’t have the power to clear the 2-meter hurdle.”
I think it’s natural for everyone to want to overestimate their abilities, but it doesn’t mean that their abilities determine their value, so you don’t have to worry about it.
There is no strikeout in the investment world, so I feel that strict adherence to the rule of swinging the bat only when the ball that I am good at comes will greatly contribute to protecting and breeding assets. But what about?
By Admin|2015-07-06|2015,News Release|