“Our greatest power is that we know that we don’t know and we are open to being wrong and learning.” -Ray Dalio
Whenever I share new investment ideas with my readers and clients, no matter how confident I am, I always feel worried that I might be wrong, especially if my idea is unconventional or against the consensus. The irony is that in every investment transaction, there is always a buyer and a seller, and both of them think that they have made a smart decision.
If I hear different options from other people, I will tell myself, “No problem, I’m open-minded. After all, there is always some probability I might be wrong and that it’s worth the effort to consider what others are saying.”
But I found it very hard, maybe for many other people as well, to calmly take in what other people are thinking rather than block it out, to listen carefully and objectively to the reasoning behind differing opinions, or to clearly lay out the reasons why they haven’t reached the same conclusion.
Until I studied hedge fund billionaire Ray Dalio recently, I realized the art of seeking out thoughtful disagreement.