Updating Your Beliefs In Light of New Evidence
The author advises to strike a balance between conviction and flexibility when investing.
Change your opinions when the facts change. Whatever your strong opinions are, be open to changing your mind when new facts and situations emerge.
Expose yourself to opposing viewpoints and opinions to avoid confirmation bias. Discuss a stock with others to learn about their perspectives. Request that a friend play devil's advocate and challenge your assumptions.
Good investing requires a unique balance of conviction in following your ideas and flexibility in recognising when you have made a mistake. You must believe in something while also accepting that you will be wrong a significant number of times over the course of your investing career. This is true for all investors, regardless of their position. The ability to strike a balance between confidence and humility is best learned through trial and error.