Knowing Enough to Know What I Do (and Don’t) Know

Recently, Jim O’Shaughnessy posted a series of tweets recounting some of the things he has (and admittedly hasn’t) learned over his 30-year career.

My take on his musings? Well said! I especially like #’s 9,11,19 & 24. I think it all boils down to that we are human and need to acknowledge that fact.

1/ I have been a professional investor for over 30 years. What follows is some things I think I know and some things I know I don’t know. Let’s start with some things I know I don’t know.

— Jim OShaughnessy (@jposhaughnessy) May 10, 2018

9/Massive amounts of data have documented that while the world is very chaotic, the way humans respond to things is fairly predictable. — Jim OShaughnessy (@jposhaughnessy) May 10, 2018

11/I don’t know what exciting new industries and companies will capture investor’s attention over the next 20 years, but I think I know that investors will get very excited by them and price them to perfection.

— Jim OShaughnessy (@jposhaughnessy) May 10, 2018

19/I think I know that no matter how many times you “prove” that we are saddled with a host of behavioral biases that make successful long-term investing an odds-against bet, may people will say they understand but continue to exhibit the biases. — Jim OShaughnessy (@jposhaughnessy) May 10, 2018

24/I think I know that the majority of active stock market investors—both professional and aficionado—will secretly believe that while these human foibles that make investing hard apply to others, they don’t apply to them.

— Jim OShaughnessy (@jposhaughnessy) May 10, 2018