Monday, September 17, 2007

Learn to ask questions

Book Value
The Only Three Questions that Count
Ken Fisher
(www.wiley.com)

Know the unknown

You may be smarter, wiser, or better trained than the next investor but that isn’t enough, says Ken Fisher in The Only Three Questions that Count ( www.wiley.com ). “You’re a fool if you think being smarter or better trained is enough to beat others based on commonly available news and information.”

The problem, as the author diagnoses, is that the typical investor’s mind harbours “the false premise that investing is a craft, like carpentry or doctoring.” No, investing is more like a scientific query session, says Fisher.

“As a scientist, you should approach investing not with a rule set, but with an open, inquisitive mind. Like any good scientist, you must learn to ask questions. Your questions will help you develop hypotheses you can test for efficacy.”

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