One of the commonly heard phrases "I know, I understand....."
Yet, when it comes to making decision and taking action, we are often 口是心非！(translated: affirm on lips but deny in heart!)
"Errr.. but because... of this and that Bla Bla Bla... “
"This time is different!"
How many times in life have you feel that you know and understand the situation and yet, when you compel to respond and take action, you shy away!
Then when the outcome turns out otherwise, you will say "I already know and tried." Somehow, the result is always the same or worst without any improvement.
Or you keep repeating the same mistakes, even though you already know and understand?
How important is "what you know and understand" to you?
Did you really try with your heartfelt effort? Is your heart right?
Did you have the discipline to implement what you know, or just finding excuses each time?
Do you admit the mistake, accept the responsibility and become better the next time?
"Be Fearful When Others Are Greedy and Greedy When Others Are Fearful!" - Warren Buffett.
Do you feel that you understand entirely above phrase, even blog about it and wear it on your lips and often proclaim that you are value investor?
Then how come, for some reasons when the stock market is high (E.g. STI hit 5 year high on Apr 2015), you still feel "itchy" and continue to buy.
And when stock market or STI index already approaching to 5 year low now, you reckon it will drop further and now is not the right time to buy yet? And advocates hold on to your cash!
Hmmm.... Do I chicken out when but it comes to the real battle?
Is knowledge really power?
Napoleon Hill wrote in his bestseller book "Think and Grow Rich" there are two kinds of knowledge;
1.General and 2.Specialized. General knowledge no matters how great in quantity or variety it may be, is of but little use in the accumulation of money or success. Knowledge will attract money or success only if it is organized, and intelligently directed, through practical plans of action to the definite end of accumulation of success.
Many people thought "knowledge is power". It is nothing of that sort! "Knowledge is only potential power" it only becomes power once it is organized into definite plans of action and directed to a definite end!
In order not to commit to the mistake of "understanding only" and no result to speak of, I impose the below three steps to myself, be it in life, in career or in investing.
Step 1: Learn
Have the passion and discipline to read, understand and acquire as much knowledge as possible.
Step 2: Remind and Relate
Consistently remind myself either by writing it out, or constantly communicate the philosophy/theory to people around you. It can be blogging, commenting on blogs or speaking to family members, friends and colleagues to share/exchange philosophies. Over time, you will be so good that you can explain so simply the philosophies/theories for others to understand.
For instance, you will realise how great investors always like to be interviewed by journalists. During the interview, they always repeat the same philosophies they believed in!
Step 3: Implement, Fail and Learn
Practise what you know by devising a plan way ahead. Be sensitive and anticipates. Next, layout timeframes and set criteria for the execution of the plan. Do not “show-hand” during the first round! Preferably to fail early "small stake" and still can come back stronger and better in the many rounds ahead. You need to expose and have many experiences the real battle before you can really become good.
Do not worry about mistakes in life. It is good to lose money and go broke at least once, preferably twice. But does it early so that you are talking about US$20k not US$20mil, which you still can come back.” - Jim Rogers
Over time you will realize, not only you know and understand, but now you can truly implement what you know to achieve a set of positive results!