A Note for Newcomers

My Observations are primarily intended for the benefit of individuals who work in or invest through the financial services industry. I have learned that such an audience strongly prefers an informal approach with a touch of irreverence and humor.

Friday, November 18, 2011

Really? Is that a fact?

Too often people phrase an opinion as a statement of a fact. When we do that we polarize1 the minds of those listening. It’s a great way to end a dialogue and begin an argument.


People frequently do the same with what are in reality conclusions2. This again is a great way to end a dialogue and begin an argument.

Adding “in my view” keeps those minds and dialogues open. We don’t need a bi-polar society3.

1. By this I mean that the listeners immediately react in conformity with their prior convictions and cease further analysis. Those that agree see the “statement of fact” as confirmation of their belief and we know how confirmation bias then affects them. Those that hold a contrary belief see the expression of the “fact” as contrary to their belief and then affected also by confirmation bias, discard the “fact” without further consideration.

2. As a tip off, it is not uncommon to see “judgmental” modifiers included in the statement.

3. The analogy is not apt; this last sentence is an example of what I was discussing.

Thursday, November 10, 2011

Football and Politics

Several years ago I wrote an Observation that given recent developments bears repeating. I reproduce it here and give an update.

• Demigod (Demon)

Corporate culture has a negative aspect I would like to address. I call it the deification (often later demonization) of senior executives. These folks are not demigods (or demons). They are not smarter (or vice versa) than before they got promoted (appointed, whatever) and their intelligence and acumen does not vary with the fortunes of the firm. They are humans just like the rest of us. Nonetheless this process of deification goes on constantly, often the result of actions by their subordinates.

We are neither unintelligent nor uneducated and don't help ourselves or the firm by buying into the process I have described.

We should overcome the temptation to do so.

- 07/07/2008



• Football(Coaches) and Politics(Candidates)

Sometimes the folks placed in positions of power come to believe that the deification process is justified. Such beliefs can be manifested by actions which demonstrate “I know better” or “the rules don’t apply to me” attitudes. I guess it takes a level head to resist that temptation.

We don’t help matters when we go along with this.