Do you ever come across such questions. This questions tends oneself into thinking what we really wants ? In investment philosophy such questions often asked to enquire the mind-set approach of an investor. Charlie Munger popularised mental models concept in his investment philosophy. Consider a car mechanic who makes an image of fully functional car in his mind . If someone’s car get dysfunctional car mechanic just compare that dysfunctional part with mental image in his mind. After comparing that dysfunctional part in car by Repairing or replacing it. Now car get fully functional car. Similarly investors always looking for preparing such mental model in his mind so that they can identify misplaced values of stocks and using this model derive profit out of it. Every investor has its own mental model. Generally the above question asked to find what actually investor is thinking? In case if you attended such interviews you will get to know that.
Let’s deep dive into the question. The question is what we want to become is it the good player of Loosing team or the Bad player of winning team. Let’s look it as term by term. In Good player of loosing team obviously good player has strong skillsets and he can reorganize team structure, finding new strategies as to win incoming matches. Right? Is it Hope generating mind-set? Optimistic mind-set Right. It’s hope generating. Now what if that good players aggression stops him from further improvements and after loosing matches his mind-set turns into negative biased? What happens if he don’t accept that it has to make further improvement even if he is good player. He is denying to the learning or denying to sharpen its saw (7th habits of highly effective people 😊) . It will affect it’s long term approach. While team might will be turns into a winning team by proper strategies but it’s own saw gets smoother.
While in case of bad player of Winning team obviously other players performing that’s why team is Winning. Bad player can learn from those players where actually it gets wrong and after improving that mistakes he will also improve his performance in next incoming matches. Again it hopeful, optimistic. Right? Here bad player accepting his performance is bad. Now he wants to get improved after learning those skills. What if he denied it as team is winning? What if he didn’t accept that it’s performance is bad ? He will remain in a bias that he also contributed to the team and that’s why team is winning. It will also lead to affect it’s long term approach as if he not improved that skills it might spell out from team.
Up to now we cover the aspects of a both good and bad player. After reading the same one conclusion we can derive that whatever the current performance of player. It must accepts further learning. If he denied that it will leads to disaster for both of them. Interviewer gently add gently why to the question and tries to know it’s further approach . What investor wants to do in his next moves either to learn the new by accepting mistakes or to further continuing its same portfolio as it’s delivering expected returns.
Some of this type of other questions are what would you like to become A Big Fish in Small tank or To Small fish in Big tank. No ideal answer is their for such questions. It depends upon what mind-set has the person who is answering the question.
Now So what we can learn from such questions that it doesn’t matter our today’s situation where we are . One should think about further improvement. The question is not about whether it’s good Or bad thinking. It’s about approach what mind-set should successful investor have? Game theory law also applied here that game never stops and you are always the part of game. So never stops learning and improving skillsets. What you think? What would you like to become? Also suggest me something new to make this blog creative. Comment down 😊