Why I Never Do My Own Research

Hey, today it’s french National day 🥐 🥖 🇫🇷 ! How many cars will they burn? And how much butter will be consumed? that’s questions for another day…

I think it's a critical mistake to believe that you have to "do your own research".

What does that really mean? If, for example, I want to invest in a toy company, should I sift through its entire balance sheet and financial aspect myself? Honestly, I don't have the skills to scrutinize a multi-billion dollar company.
I rather do an ice bath.

For another example, let’s take a company that owns gold mines. The boss isn't going to venture into the desert himself to find a mine. They hire other guys to do the dirty work.

That's why I think the idea of "doing your own research" is misinterpreted. It's more about "building your own network".

I know people who are more competent than I am in almost every field because they have developed this expertise. These are the people I ask my questions to.

Take the example of the trading algorithms I told you about recently. Do you think I created the algorithm myself?
Not at all.

I've looked at research reports on the strategy, studied other market research, understood how the algorithm works, and asked for the opinions of algorithm experts.

I don't play Warren Buffett and analyze the financial statements of companies.
I deserve a better life than getting Maccy dees every day.

I make the most of the research done by others to form my own opinion. And honestly, my own opinion doesn't really matter. 🫠 

If we try to understand everything before we take the plunge, we'll never take action. When I started investing in Bitcoin, I maybe understood 20 to 40% of the concept. Today, I'm maybe at 70-80%.

So, at what percentage of understanding should you take the plunge? A good business management book would advise you to make a decision when you have between 50 and 60% of the information. If you wait to have all the information, the opportunity will pass. If you jump in too early, you might not have enough elements to succeed. Between 50 and 60%, that's probably the right time.

Catch you later,

Antoine