In investing, it is totally important to have an idea of the different disciplines in life to understand how to arrive at a great decision. If you are only trained in economics and you used only the methods taught in economics and try solving each and every problem with economics, I can guarantee you that you will never make a good decision nor solve a problem in the best way. You must read alot to understand the workings of how history affects the psychological make-up of people and how it affects the general economy at large.
Like what Charlie Munger says "To the man with a hammer, everything seems like a nail". You must know the big ideas in the big disciplines and use them routinely and wisely - all of them - not just a few. Most people are trained in just one model - economics or marketing for eg - and try to solve all problems in one way. This is a dumb way of handling problems.
1 comment:
Yes, I agree whole-heartedly with this. The investor should read as widely as possible to get a multitude of perspectives.
Post a Comment