Summer Reflection — a perspective on prudent investment practices

Photo by Ben White on Unsplash

“Each book describes the psychology of commitment and fallacies that emerge with monumental consequences when good decision-making principles are overlooked.”

”It may be unnecessary to say this because, of course, all human understanding is based on simplifications of more complex realities.”

Bad Blood — hot companies gone cold

Innocent Man — the injustice of just demands

“The Innocence Project was founded in 1992 when newly available DNA testing allowed plaintiffs to revisit felony cases.”

Five factors that impede good judgment

“Bad Blood and Innocent Man illustrate at least five factors relevant for investors today.”

“Likewise, deal pressure affects even the savviest investors.”

“It pays to be active, interested and open-minded, but it does not pay to be in a hurry.”

“The temptation to skip the uncertainty and hard work of early-stage investing, and lasso a crowned unicorn, has much allure.”

“But relationships may also discourage independent thinking and lower scrutiny and skepticism.”

“The most pernicious of psychological fallacies is premature commitment.”

Search for Truth in an uncertain world

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