For Noah Murad, the CEO of Mill Street. & Co., the pursuit of knowledge is an important and admirable part of life. For him, this is what makes learning about topics such as history and past economic theories so important – because not only is it interesting – but it also helps one to reflect on the choices and outcomes of others, as well as the choices that are currently available to oneself. This is helpful in many aspects of life, but is especially useful when sitting in the chair at your local investment firm, and you are deliberating on your next few steps to build smart capital.
Take for example, the Prospect Theory from Kahnemen and Tversky in the 1980’s (explained on page five of Noah Murad’s Perspectives #6). It now serves as the foundation for behaviour economic theory within the modern day. The experiments conducted by Kahnemen and Tversky indicate that people become so worried about losing, that they push rationality off to the wayside when making a decision. This concept plays deeply into the ‘fear of missing out’ that so many people experience today – especially with how easy it is to compare oneself to another’s digital representation on social media.
With regards to dealing with a latent fear of missing out, it is important to note that this can impact your investment decisions and future financial plans if you are not mindful. It is easy to become caught up in the worry that someone else is better off, or that a different business avenue will be more profitable because of x,y, or z. However, the way to push through the fear of missing out is to realize that you are most likely comparing only the good – that is to say a perception of what could be without a full consideration of what reality would truly be like.
Studying economic history and harbouring a continuous pursuit of knowledge is an outstanding asset in terms of building smart capital. It allows you to step back and actually analyze your current situation, and in many cases, it gives you an example that directly relates to your current choices or options. This is important to remember the next time you are thinking about visiting your local investment firm in a city like Toronto, as the answer to your investment questions may lie within your own personal thoughts, or from the thoughts of a historical person – both of which can be attained through a meticulous and dedicated pursuit of knowledge.
For Noah Murad, knowledge should be pursued throughout all stages of life and it should be without limits or restrictions. When it comes to building smart capital and investing intelligently, having an unhinged pursuit of knowledge is an immense advantage. Not only does this help with things like financial management or understanding the advice of a broker from a large Toronto investment firm, but it also helps when determining the value of an investment or financial decision.
By studying economic theories of the past, such as the Prospect Theory from Kahnemen and Tversky and how it relates to the fear of missing out, we can effectively learn about the history of investing and how it impacts our modern situations. This allows us to use the experiences of the past to influence our new decisions, making for an invaluable asset in terms of building smart capital. Also, when it comes to making financial decisions at an investment firm in a city like Toronto, you are more prepared for any of the possibilities that could occur, and less influenced by a fear of missing out. This helps you to make a clearheaded and informed decision, which is invariably useful in terms of building smart capital.
If you would like to learn more about the pursuit of knowledge and how it contributes to building smart capital within the modern economic climate, come by the Mill Street & Co. website. Here, the CEO Noah Murad provides his take on business management and smart capital growth, along with insights towards leading a life that is balanced between work and family. Additionally, Mill Street & Co. has an online knowledge base, which is a terrific resource for anyone who is looking to learn more about managing risk, making new investments, or personal finance management.