Investment Illusion nº1

Tuesday, September 29, 2020 Francisco 0 Comments

Words are flying out like / Endless rain into a paper cup / They slither while they pass / They slip away across the universe.

These words are from the 1969 Beatles song "Across the Universe," first released on the album No One's Gonna Change Our World.


Yes information is not knowledge, to know what to do, to have a strategy, to have a system, to have a rule is much more important than lots of data points. To read opinion is even worse than data points. Forget about information, forget about reading news and see what works and copy, see who did very well and copy, read a biography, read history.

One of the most stupid ideas of the investment business is that past performance does not matter. Of course it matters. If you see long term performance even if lumpy there is something there. Copy study it .


Forget information , both buyer and seller have pretty much the same info and they want to do the opposite. Information is not key. To know what to do is key.


 “To bankrupt a fool, give him information.”

― Nassim Nicholas Taleb, The Bed of Procrustes: Philosophical and Practical Aphorisms


“Information is not knowledge.”

― Albert Einstein


One of the most persistent illusions of the business of investing is that information is all you need to make money. Organizations that sell information foster that illusion.

Thomas H Phelps

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