I was at a board meeting the other day and someone reminded me of a quote that one of my former bosses at Bain & Co., Harry Strachan, used to say: “You don’t know what you don’t know”.
When going you are facing the unknown like a new business, new investment, a trip to a new place, getting married or having a surgery, it is best to try do some research. Try to avoid situations than could blind side you.
Things to do to avoid ignorance
· Use Google (you can access information about almost anything nowadays)
· Read a book (or several books) on the subject
· Talk to people who have gone thru similar situations
· Hire experts ($100 spent on an expert will avoid a $1,000 worth of mistakes)
· Be inquisitive, be curious, live a little
Ignorance is very costly to the investor. Make sure you do your due diligence before investing in anything. Do you remember Enron? Just like in marriage, try to learn as much about the person you plan to marriage before you do. By the way, if you are going to be living in the same city as your in-laws, it is probably best to get to know them also, otherwise you might get a big surprise.
I could go on and on about the benefits of not being ignorant, but I bet you can come up with this on your own.
Just remember, you should be careful, don’t be too arrogant. You just don’t know what you don’t know.
Thanks for reading. Have a great day.