My QnA with Morgan Housel (collaborative)

Morgan Housel (from collaborative fund) has a few very good questions, and I have a few answers, most likely not as good as his questions, though. Please do not take my post too seriously, but …

I hope my posts achieves two things. First, I hope some of my readers have a few laughs (especially welcome during current times!). Second, some of my answers (bullets), shall actually stress how good his questions are – because most of them are everything but easy to answer…

Who has the right answers but I ignore because they’re not articulate?

What haven’t I experienced firsthand that leaves me naive to how something works? As Jeff Immelt said, “Every job looks easy when you’re not the one doing it.”

  • I have a rather ‘safe’ job and a full monthly income, which I believe makes me partially blind for various problems many people that are currently not so fortunate may have. I try hard to correct my naivity!

Which of my current views would I disagree with if I were born in a different country or generation? — Most probably, my views on

  1. social media: mostly, I see it as a huge waste of time. I have not logged into facebook for years, do not have instragram. Use twitter exclusively for investment topics/my blog. If I were 10yrs younger*, who knows …
  2. conflicting goals of economy/environment: I guess, when I was 10yrs younger* I would evaluate economic questions differently (with less understanding) and at the same time focus more on pressing environmental goals since I would live longer and many of my friends would influence me
    (* since I chose the same perspective twice (being ten years younger) I guess that’s my preferred choice vs being X years older 🙂 )

What do I desperately want to be true, so much that I think it’s true when it’s clearly not?

  • I believe (and hope to be right on it) that value investing works (hence my investing philosophy). Academic research clearly indicates otherwise regarding more recent decades… (note to myself: read this questions and my answer several times)

What is a problem that I think only applies to other countries/industries/careers that will eventually hit me?

What do I think is true but is actually just good marketing?

What looks unsustainable but is actually a new trend we haven’t accepted yet?

  • (un)social media ? I deerly hope that people will some time spend less time on on their smartphone polishing their (un)social media profiles and spend more actual time with friends (i.e. in pubs) again!

What has been true for decades that will stop working, but will drag along stubborn adherents because it had such a long track record of success?

  • On the one hand, I could say value investing…
  • On the other hand, that my exactly be the reason why it works in the long run
  • On the third hand :D, you can read more here

Who do I think is smart but is actually full of it?

  • I do not know. But I believe, there are many people nowadays which might appear not too smart,
    • which might actually be a lot smarter than they actually appear,
      • because they figured out that a good deal of their potential viewership / voters / fans / listeners etc. likes their easy to understand messages, solutions, concepts, etc. … (see incentives below)
  • All this has a lot to do with todays discussion culture or Diskussionskultur – we Germans just create one single long noun

What do I ignore because it’s too painful to accept?

  • Buying high growth companies at any price no matter what their (community) adjusted adjusted earnings-before-everything-else worked spectacularly well (so far!)

How would my views change if I had 10,000 years of good, apples-to-apples data on things I only have recent history to study?

  • This is a good question and I believe I tend to believe in good fact-based research and data. But what’s more important here: I like apples! 😉

Which of my current views would change if my incentives were different?

  • My view? I don’t know. But my actions would probably change a lot if the incentives are good enough! I hope and believe my investing actions would not change (that much) with different incentives. Let’s say managing other people’s money
  • I always believe that incentives are very important! We are all only human!

What are we ignoring today that will seem shockingly obvious in a year?

  • I do not know. But I will come back in a year with a very good answer!
  • As an investor, this question should get you thinking!

What events very nearly happened that would have fundamentally changed the world I know if they had occurred?

How much have things outside of my control contributed to things I take credit for?

  • My investments in Pandora A/S have worked out well (for the time being). For once, it seems the turnaround is well on track (besides corona).
  • But, other investors’ perception of PNDORA improved a lot and pushed prices higher (i.e. when the company secured liquidity for their worst case scenario)

How do I know if I’m being patient (a skill) or stubborn (a flaw)? They’re hard to tell apart without hindsight.

  • If you knew how often I wonder about the true answer for myself!

Who do I look up to that is secretly miserable?

  • A secret is a secret until it isn’t

@Morgan Housel, thank you for your questions 😉

Dear readers, I hope you enjoyed my non-interactive Q&A, maybe had a laugh or two and ideally you might have learnt something. Thanks for reading! 🙂

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