“The World’s Smartest Man Syndrome” by Bennett Goodspeed

Found another article, “The World’s Smartest Man Syndrome,” by Bennett Goodspeed while I was searching the Internet. Despite it’s original publication date of 1978, it encompasses many of the principles we talk about that are relevant today.

A few of Goodspeed’s  important words:

“Just as forecasters have their problems with change, so do analysts. This is because initially change is numberless – the new numbers that measure the change will not be available for some time after the change has already occurred. Therefore, to deal with change, one has to rely on skills of the non-analytic or intuitive mode. Thus, a portfolio manager needs to identify change early before it can be empirically measured by everyone (before they can see the iceberg). In other words, to be effective, he must operate in the inefficient side of the market by having the courage to make decisions with only partial information.He must accept the responsibility for dealing with changing situations.”

Without going into a lot of detail, I think the main points of the article are:

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