After reading a post by Brad Feld and subsequent one by Fred Wilson a theme became apparent. Piggybacking on other investors is a recipe for failure. The herd mentality is very hard to escape in the world of finance and investing. Constant spam invades our thinking and it becomes difficult to distill our own thoughts from others (for proof just turn on CNBC). Also, who could forget, or ignore for that matter, the hype leading up to the Facebook IPO?
This is one reason I think Warren Buffet has been so successful in his investing career and remains put in Omaha. The kingpin of investing barley steps foot on Wall Street…Go figure. Another person who comes to mind is Michael Burry. Michael is featured in the Big Short and The Greatest Trade Ever for his prescient call on sub prime mortgages. Here is a snippet of how he cultivates his uniqueness;
“no matter what group I’m in or where I am, I’ve always felt like I’m outside the group, and I’ve always been analyzing the group.”.
Burry talks about the need to find his own ideas. These are the best ideas we will ever have, and often we discount them, for fear of failure or lack of confidence. We all have the next great idea within us, trust your instincts and build/invest in what your heart desires!