I recently discovered re-runs of the very successful game show Family Feud on YouTube, there is this particular episode where a beauty queen was asked the question - "What practice would you eliminate if you became CEO", as beauty contestants were quite adept in Q&As, she gave a brilliant answer, she said that she would eliminate "Glass Ceilings" in the office!!
(The phrase is commonly used to describe the difficulties faced by women and minorities when trying to move to higher roles in a male-dominated corporate hierarchy. The barriers are most often unwritten, meaning that these individuals are more likely to be restricted from advancing through accepted norms and implicit biases rather than defined corporate policies.
(The Glass Ceiling: Definition, History, Effects, and Examples (investopedia.com)
Guess what? the answer is incorrect! because the basis for correctness is not the brilliance of the answer but the opinion of a hundred Filipinos who were asked the same question. unfortunately, it is not the popular opinion.
This brings to mind a well-known advice given by one of the most prolific minds in modern economic history - John Meynard Keynes on stock picking - this is what he has to say...
more on the "Keynesian Beauty Contest insight here - Keynesian beauty contest - Wikipedia
Keynes observed that since the stock market is participated by "opinionated investors", the stock that eventually rises may not be the stock you think has the most potential, but the stock that the majority of market players believed will do. An illustration of the Keynesian Beauty Contest Analogy is where judges are rewarded for selecting the most popular faces among all judges, rather than those they may personally find the most attractive.
So, a word of caution the next time you think you have a big winner on hand, is it a big winner that a large number of stock market players will also believe in? if not, don't bet your house on it!!
All the best my friends!
#acgadvice
No comments:
Post a Comment