Good morning, good afternoon, good evening. Depending on the part of the world you’re in. This is Jonathan Satovsky of Satovsky Asset Management and on today’s episode of “Seeking Wisdom, Wealth, and Wellness,” I want to talk about some financial snafus.
Let’s call them: 1. Garbage In, Garbage Out, and 2. False Precision.
Garbage In, Garbage Out
Many investors make decisions based on certain assumptions. And those assumptions, if the assumption is wrong, then obviously the result isn’t going to be what you expect. So to the greatest degree possible, I would suggest working with the known rather than the unknown. And if you work with the knowns, I think it’s easier to solve problems because you can work with what you know and then probabilistically go from there.
False Precision
The words “always” and “never” are a little dangerous. I think it’s better to say “sometimes’ or “could be” or “part of you believes a certain outcome” because the world is unpredictable and there’s a lot more gray than black and white. If you approach things without the “always” and “never” and instead use “sometimes,” and “could be,” you give yourself a greater chance for better expectations over the short and long run for yourself and the people that you care about.
Think about that on your Path to Wisdom, Wealth, and Wellness.
Have a great day.
