A highly relevant article for an investor, especially if one is looking at improving his expertise (not necessarily trying to become an expert)
Found the following excerpts very interesting (emphasis mine, comments in italics)
- What it takes to become an expert appears remarkably consistent across domains. In field after field, researchers find expertise requires many years of deliberate practice. Most people don’t become experts because they don’t put in the time.
- Experts train their experiential system. Repeated practice allows experts to internalize many facets of their domain, freeing cognitive capacity.
- Intuition is only reliable in stable environments. In domains that are nonlinear or nonstationary, intuition is much less useful.
- Expert investors exist. Unfortunately, it is not clear that their skill sets are transferable. Expert investors are likely a product of both mental hard wiring and hard work.
Experts are not casual about their domain. They build their lives around deliberate practice and practice every day, including weekends. But experts also report sleep and rest as critical elements of their results, and they avoid overtraining or overexertion. Evidence shows that performance diminution in cognitive tasks coincides more with reductions in deliberate practice than with aging.
As it turns out, expertise requires about ten years, or ten to twenty thousand hours of deliberate practice. Little evidence exists for expert performance before ten years of practice. 3 Even prodigies like Bobby Fischer (chess), Amadeus Mozart (music) and Wayne Gretzky (sports) required a decade of practice to generate world class results – So I have a long way to go. But I enjoy the process of learning, so it is both fun and profitable