02 Feb An inconvenient truth
Knowledge is good but why knowing in excess isn’t that great
Knowledge is good to have but the financial advisory profession is more than the display of knowledge. Knowledge is good as long as it is “need to know”. Knowledge provides diminishing marginal utility ifaà it enters the realm of “nice to know” or “knowing for showing”.
1) Be knowledgeable to understand your profession but never indulge in the display of knowledge because it is clear that more knowledge does not translate into better advisory. Discipline and wisdom is the bedrock of great advisory.
2) As such excess knowledge about capital markets to falls immensely short of a complete understanding of the market and other peripheral dynamics
3) The more you know the harder it is to communicate the knowledge, thus making it confusing for the Investors
4) The more you know the more you have to know and deeper and deeper you go into the land of theories never to return with simple wisdom
5) You can never know all because there are scores knowing more than you and ironically the most successful advisors in all likelihood may not even know as much as you do.
6) Despite knowing more and more your ability to know the future hardly increases.
7) People come to you to find a short cut, a relief, a placebo. Who said people wish to know all? Do you ever get deep into the working of your car engine or is it the look and drive alone that matters the most.
8) People beyond a point instead of getting impressed may get irritated by your display of knowledge
9) People come to you because they trust your wisdom, knowledge and judgement. They would rather have your trust than your knowledge. Don’t hide under the cover of statistics. Always offer your presence and wisdom to engender trust.
10) Finally knowing it all without the power of conviction boils down to nothing. Unless and until you possess the art of convincing people to invest for their own sake, for the sake of their own dreams your knowledge will hardly take you further
The battle we fight isn’t one of knowledge vs ignorance but one of faith vs fear.