Check Your Assumptions, #1

I think this post could have had a better title, as it really is about the value of recognizing limitations, rather than finding some value in actual ignorance.  The ideas presented here are a direct corollary of “Check Your Assumptions.”

That is, Barry Ritholtz explains how it is vital to understand what it is that you know, so that you can determine what it is that you don’t know.  For me, a large part of this is digging even deeper to determine what are the assumptions behind the things that I “know”.

He also does a nice job of describing how clients or investors or the general public mostly do not think this through.  As a result, they have a vague idea that they don’t know much about something, and so when someone says, I have JUST THE THING for that, it is very comforting, and they are SOLD (generally sold a load of crap).

http://www.ritholtz.com/blog/2013/08/on-the-value-of-not-knowing/

 

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