Balancing Conviction and Flexibility in Investing
Gary Mishuris, CFA
![Gary Mishuris, CFA]()
Gary Mishuris, CFA
Managing Partner, CIO at Silver Ring Value Partners | Helping long-term investors safely compound capital
Conviction is a necessary quality for any investor – lack thereof can lead to an inability to stay the course on a successful contrarian investment. Yet without flexibility investors can easily fall prey to various behavioral biases such as anchoring and overconfidence and fail to correctly change their minds when the evidence merits doing so. The ability to properly navigate the tension between conviction and flexibility is one of the distinguishing traits of superb investors. This article explores the question of when we should stick with our convictions and when we should be flexible and change our minds.
Investment Professional | Independent Director
6 年Good insights, Gary, thank you. Your point that an investor should “assume you have made mistakes and aggressively search for them” is both critical and challenging, particularly for a sole practitioner. Bringing a “bear” case to the table, for example, when one has a bullish view, can be helpful.