Investing can be a fun and intellectually stimulating puzzle, similar to solving crosswords or watching movies. If you enjoy it, picking stocks can be a rewarding hobby even if it's not always financially beneficial.
Thesis drift is when investors create new reasons to hold onto a stock after their original reasons have failed. Instead of admitting they were wrong and moving on, they keep justifying their position and often end up losing more money.
In both investing and life, it's important to recognize when a strategy isn't working. Instead of sticking to failed ideas, we should be willing to change course and learn from our mistakes to find better paths.
People often stick to familiar ideas, even if they're wrong, because those ideas feel comfortable. Just like in science, new information can be hard to accept.
Seeing the world differently can lead to better investment opportunities. Those who challenge common beliefs can find hidden chances in the market.
Making simple changes can solve big problems. Just like washing hands helped reduce childbed fever, allowing more housing construction might help lower rising costs.