Saturday Serendipity
Quote, Mental Model, Twitter thread.
Quote
“Investing isn't about beating others at the game, it's about controlling yourself at your own game.” - Arnold Van Den Berg
Mental Model
Consistency Bias:
Similar to Commitment Bias people stay consistent with their beliefs, commitments ,etc even if facts change and they are wrong. It is different from Commitment Bias in the sense that in Consistency Bias we don’t necessarily have to have these commitments out in the public. Consistency Bias can be dangerous when you don’t change your decisions when the facts change.
Effect in Daily Life:
Everyone has a political view it may be private or it may be public.People tend to stick to their view even if it is wrong.Many times you tend to stick with your career choice even if you think you have made a mistake in choosing that as your career. Even with food you tend to continue having what you like over something new.
Effect as Investors:
As investors we make decisions which can be wrong. Your investment might not be the best if the management quality has depleted or the fundamentals of the business that you saw and it is now is different and business is deteriorating. In this type of a situation it is hard for people to admit they are wrong and then you don’t sell. This can be costly for you.
Twitter Thread
That’s it!