The Power of Humble Ignorance
December 14th
What counts for most people in investing vs saving is not how much they know, but rather how realistically they define what they don't know.
Even seasoned investors tend to measure their success by the size of their knowledge pool, but the true measure of success lies elsewhere. It's the understanding of one's own limitations that distinguishes a prudent investor from a reckless one.
Every investor is ignorant in some respect. However, the unawareness of our ignorance is the real danger. This lack of awareness pushes us into the abyss of uncalculated risks, leading to investment decisions based on ill-judged confidence.
The key isn't to hoard knowledge or resources, but to understand our boundaries. It's about knowing when to seek advice and when to step back, when to learn from mistakes, and when to grow from experiences. This humble admission of not knowing everything is not a weakness, rather it's a tool to make informed decisions.
In the world of investing, and indeed in life, understanding what we don't know often proves more beneficial than knowing a lot. It prompts learning, invites caution, and encourages seeking advice, leading to calculated decisions and successful investing.
Copyright © 2023 by Scott Sansovich