If everyone thinks alike, no one is thinking.
Bill Walton’s words always feel fresh whenever you hear them. Indeed, the news of his passing shocked many. He was not only a basketball legend but also a unique figure who analyzed the game from various perspectives. His quote, “If everyone thinks alike, no one is thinking,” offers a significant lesson for our lives and investments.
What is the key to successful investing?
What strategy should we choose to succeed in the stock market? Reflecting on Bill Walton’s quote, the moment the majority thinks and acts the same way, we must be different from them. Relying solely on “well-known facts” in the stock market can actually lead to losses.
The future of AI and business
Everyone thinks AI will bring tremendous changes to business. This is already a well-known fact. However, many still do not fully utilize the potential of AI. It’s time to think beyond the “well-known facts.”
Warren Buffett’s advice
The great investor Warren Buffett explains how difficult it is to distinguish between investing and speculating. He compares investors to Cinderella at the ball, knowing they must leave before midnight but not knowing exactly when to leave.
The advantage of contrarian investors
Many investors who have chosen contrarian investing and achieved success over decades remained optimistic when the public was in fear. This was true during the 2008 financial crisis and the 2020 COVID-19 shutdown. It’s crucial to stay optimistic when everyone hates stocks.
Conclusion
Taking courage from Bill Walton’s quote, we must always have a new perspective and think differently. This is an important lesson that applies to all areas of life, not just investing. So, the next time everyone thinks the same, think differently. That is the true secret to success.
Reference: Bill Smead of Smead Capital Management, “Bill Walton’s Insane Brilliance”