This is a follow on essay to the two blog articles, “How much time does it take to be a cognitive investor,” parts one and two.  If you have not read those articles, I recommend reading them first.

The short answer to how much expertise is required to be a cognitive investor is, “less than you might imagine.”  There is a close analogy to the answer how much time it takes.  As long as one focuses on the relevant elements that can really make a difference and does not get distracted by studying topics that have little bearing on investment results, the amount of expertise is easily within the grasp of almost anyone capable of graduating from college.

The required expertise falls into four general categories: finance, mathematics, psychology, and process. Read the rest of this entry »

In part one, we answered the question of how much time it takes, assuming you already have a cognitive investing portfolio.  In part two we will discuss how much time it can take to learn the process of becoming a cognitive investor and converting an existing portfolio to one that adheres to the cognitive investing methodology.

The short and simple answer is, “it depends.”  A more complex answer is that it can depend on how different your existing portfolio management process is from a cognitive investing process, how different your portfolio is from a cognitive investor’s portfolio, and how much needs to be learned and unlearned to make a successful transition.  Examining some hypothetical scenarios will illuminate the issues encountered by different types of investors as they make the transition. Read the rest of this entry »