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What is "INVESTING" ?
Morgan Housel is a partner at Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal; He says: Investing is about probabilities, and almost all probabilities are less than 100%. So you're going to be wrong and lose...
...sometimes, even when the odds were in your favor. The late investor Peter Bernstein: "You just have to be prepared to be wrong and understand that your ego had better not depend on being proven right. Being wrong is part of the process. [...]"
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History is mostly the study of unprecedented events, ironically used as a map of the future. Stuff evolves, tastes change, paradigms shift. So what worked in the past may not work today or tomorrow. The most valuable part of history is studying how people behaved when something unprecedented happened. It's the most consistent thing over time.
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Investors are always looking for factors that select for above-average investments. The best one may be: "Things that feel uncomfortable to the point of crazy." It doesn't work every time, of course. But in hindsight the root of most successful investments is the guts to back something that made little sense to others. Lack of enthusiasm or understanding among competitors is what seeds the potential for something big.
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There are five sources of (also - investing) edge:
1) Learn faster than your competition,
2) empathize with stakeholders more than your competition,
3) communicate more effectively than your competition,
4) be willing to fail more than your competition, and
5) wait longer than your competition (aka: Patience).
links:
Who is Morgan Housel? http://fortune.com/2016/08
