The growth mindset (see diagram here) mentioned in this article is crucial to become a good if not a great investor. In comparison a fixed mindset (which a lot of us see around us) leads to poor performance in the long run. The key points of the growth mindset in terms of challenges, obstacles, effort, criticism and success of others are extremely relevant for an investor. As an investor one has to learn how to deal with new challenges and obstacles (the market and businesses around us are constantly changing). Effort is crucial in terms of a desire to constantly learn and improve oneself. Self criticism and an honest one is crucial too. One should be able to accept mistakes and learn from them and then move on. Finally I look at the other successful investors and try to learn from them.
The attitude referred to in the article is relevant to us not only as investors, but is important in other walks of life too.
In addition I found another link on the same blog on the mark of greatness. I found a similar article on greatness in fortune some time back (see link). The article in fortune mentions the following
Reinforcing that no-free-lunch finding is vast evidence that even the most accomplished people need around ten years of hard work before becoming world-class, a pattern so well established researchers call it the ten-year rule.
I have read in some other articles that 10 year or 10,000 hours of work is essential to achieve proficiency in a field. All the above research encourages me to keep working hard on becoming a better investor. Even if I don’t become a great or super investor, if I keep working at it, I will defintely be a better investor. My definition of a good investor is one who can beat the market by 5-10% points over a ten year period. I have done that for the last 6 years. I definitely plan to continue working on extending this performance.
update : 03/23
see here for an earlier post on the same topic
5 comments:
hi,
It was only after reading Good to great that I started thinking in terms of 5 + yrs. (the authors multi yr research strategy impressed me).
But it seems even that is less... I have to think 10+ yrs now!
Thx for the link.
I came back to say that the Effort effect article is too good. Thx.
I liked this line. "Students for whom performance is paramount want to look smart even if it means not learning a thing in the process."
This single mistake alone has cost me a lot. I was one of the best performers at school, but my attitude was always to impress, and least abt learning! That is the worst kind of attitude to have, and I have fully realized it!
Even if you lose, never lose the lesson! Too bad, I learnt this lesson late! Better late than never, though!
Hi Rohit
Over the weekend i have read half of your blog. Very good and interesting one. Thanks for sharing your insights.
-Ranjit
thanks for the feedback from all of you
Rohit,
Found this article very useful and makes to see self in true persepctive. Appriciate your efforts writings/sharing your thoughts beyond "investing".
Keep writing ...
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