How can two opposing theories work in investing?

Actually they don’t. Sometimes one theory works and other times the other. However, since we are not blessed with future vision, we have to make do with the bunch that seems the most attractive to us. And especially so for the capital market. Every other year you will hear about the flavour of the season theory that has provided windfall profits to it’s proposer/ideator. But what we don’t realise is the conviction the ideator showed to stick to that theory through thick and thin. So much more than the variety of theories that we subscribe to, it’s a lot more important to find out our conviction.

Slightly jumbled, but hope it clarifies a bit on my position.


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