Thinking in Contrasts

We think in contrasts. Things become what they are in our minds because of how they are different. That is where Benchmarks become useful. They allow a form of score-keeping because you have an idea of the alternative if what you are offering is not available. Like sugar, fat, and salt, they are also dangerous. The goal isn’t to beat the Benchmark. The goal is the goal. In “The Art of Learning”, Josh Waitzkin discusses the principle of “numbers to leave numbers, form to leave form”. The goal isn’t the numbers. The goal isn’t the form. They are simply learning tools in the way a Benchmark is. What matters in investing is (1) being a good custodian of the Capital, (2) the creativity that that Capital empowers. Alpha is the term for how much an investor has “beaten their Benchmark”. You can’t eat Alpha. Eventually you let go of the contrasts and engage directly with what it is that matters.

"The Garden of Earthly Delights"

Hieronymous Bosch