notices - See details
Notices
EF
Emlyn Flint (not verified)
16th July 2014 | 5:25am

Hi Jason,
Firstly, nice idea for a series of posts. I thoroughly enjoyed the first of the series. However, I found this post rather odd. While I agreed with your underlying sentiment regarding creativity and investing, I felt there was a juxtaposition between sentiment and actual content.

Is creativity important in investing? Yes, if you want to be a star performer but perhaps not so much if you simply want to be above average (as one astute commenter with respect to passive index tracking and active return dispersion).

Were the examples you gave truly indicative of creativity? Yes and no.
Yes: I would say that your idea to focus on electricity rather than tech was a creative solution to the problem given that it was a novel means of changing the existing domain of tech investment.
No: Making a decision to cross the road is only an exercise in creativity on your very first attempt as you are hypothesising 'new' relationships between your data inputs and the possible outputs and using these relationships to then solve a previously unencountered problem. Thereafter, crossing a road becomes an exercise in deductive logic, not creativity.
Similarly, I would argue that your skier was actually not expressing creativity but simply good deductive reasoning skills; a point that Richard alluded to above.