Being naive might be our superpower (as young people).
Whenever we want to start anything, we probably want to do that thing well.
Being experienced means that we need to find all the answers to start our business.
But, being naive means that we overlook the struggles and pains. We get started. The starting helps us to answer those questions.
If we are fixated on those struggles and pains from the start, we will not start.
For me, I have found this to be the case in investing.
I had a much easier time investing when I was 15 in high school, knowing nothing about enterprise value or financial multiples.
Now that I know beta, risk-free rates, cash flows, discount rates, etc, I struggle to invest.
More knowledge does not mean more action.
More knowledge can immobilize.
But, what about analyzing the quality of earnings?
But, what about analyzing cash flow conversion?
But, what about determining default risk?
But, what about analyzing corporate governance?
Etc.
As we learn more, the questions grow endless.
We worry about not having the answer to every possible outcome. And, take no direction.
I talked to one of my professors. He is miles smarter than me. PhD. Years of teaching experience. Read hundreds of books. Published countless papers. Etc.
When I walked him through what I am doing and asked why he doesn’t do something similar given his teaching passion…
Concerns surrounding perfection arose. He only wanted to make the perfect content, worrying about the content over the delivery.
Failure to start is the failure of the experienced.
Overassessing is rarely required.
This is my competitive advantage. This is your competitive advantage. Let’s use it.
Bottom-line? The naive have an easier time starting. But, this is not an excuse to skip the learning once you start
