Haven’t we all heard the insult ‘dumb as a rock’ at one time or another? We recently came to the conclusion that there is something worse.
Sometimes people fail to act as smart as a rock.
A rock never acts rashly when presented with an unexpected situation. Nor makes impulsive decisions based on fleeting feelings. Nor changes long term strategies because of short term conditions.
No rock ever wanted to sell all investments because of that Democrat or Republican that got elected. No rock wanted to jump on the latest fad in the markets.
Perhaps striving to be as smart as a rock fits in with one of the ideas that legendary investor Charlie Munger talks about. His notion is that it is a lot more valuable to not be stupid than it is to be smart. After all, smart people may make stupid mistakes.
Do not take this the wrong way. We believe in education. We read incessantly. We are always searching for perspectives or knowledge that might give us an edge. Brains are useful. But it helps to remember, as Munger said, to avoid being stupid.
One of the nuances of being human is the possibility that we can be two things at the same time. Generally kind people might be rude. Those who tend to be rough might be gentle. And smart people might do stupid things. When we analyze opportunities or think about financial decisions, we try to not be stupid.
Clients, if you would like to talk about this or anything else, please email us or call.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
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