This post reminded me of the book “The Emotionally Intelligent Investor” when it talks about intuition. This post is especially relevant during a bear market.
This underscores the importance of having a checklist. For managers, I would suggest incorporating incentives in addition to rationality guidelines. Relying solely on individual incentives can often lead to decisions that aren't rational from the company's perspective—similar to a doctor recommending surgery even when less invasive measures would suffice.
This post reminded me of the book “The Emotionally Intelligent Investor” when it talks about intuition. This post is especially relevant during a bear market.
💯
This underscores the importance of having a checklist. For managers, I would suggest incorporating incentives in addition to rationality guidelines. Relying solely on individual incentives can often lead to decisions that aren't rational from the company's perspective—similar to a doctor recommending surgery even when less invasive measures would suffice.
Poly,
Within your Bounded Rationality, Logicality and Simplicity approach, what is the formula of a company's intrinsic P/E?