Archive for January, 2013
4. The process sometimes requires substantive amounts of unlearning.
Learning does not happen in a vacuum. Whenever we learn something, we fit that new piece of knowledge into our existing base of prior knowledge. But what happens if our prior knowledge is flawed? How difficult is it to learn new and better ideas when such ideas contradict existing knowledge? Read the rest of this entry »
3. It is difficult to maintain objectivity when making judgments about your own investing skill
In the first two parts of this series, I described how the long duration of the feedback process impedes the investment learning process, and how it is difficult to discern whether the quality of our investment decisions is due to luck or skill. In this section I will discuss another obstacle to learning the necessary skills for successful investing: the difficulty of being objective when making self-judgments. Read the rest of this entry »