Sunday, May 29, 2011

Fallen Heroes and Banter

I am busy reading 'Contrarian Investment Strategies', by David Dreman. While I normally avoid talking shop in this blog, I did think there was something worth smiling at and commenting on.

Growing up, you see the 'Adult World' as this place that makes sense. Teachers and Grown-ups know stuff. Kids are learning. As time ticks by you start realising that this isn't quite the case. Dreman takes Professors Banz and Reinganum to task on the theses that gave them their Phds. Effectively what he is saying is that what they said was wrong. In the book he even taunts them, and suggests they take up various challenges to prove him wrong.

My point is that you can often find Nobel Prize winners on both sides of an argument, and elaborate theories that seem to hold for years and then fall flat.

The great part about it is that it matters not one little bit if you turn out to be wrong - since that pushes you closer to being right. The scary part is if you get so attached to what you thought was right, that even if someone turns up with great evidence that you are wrong - you just close your eyes.
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