Mundy: A sceptical state of mind

MUNDY'S MOMENT

Most professional investors believe themselves to be investment sceptics. After all, no one would wish to portray themselves as a gullible buffoon.

But when challenged to define individual brands of scepticism, their responses tend to be unfocused. Many would point to their interaction with management teams and claim skills in differentiating between the saints and the snake oil salesmen. However, as I have written before, research has shown none of us including so-called experts have particularly sophisticated talents in this area. If we are devoid of the skills necessary to help us to simply back the good guys, what are the alternatives? Selective scepticism Some suggest the application of ‘deep thought’ or ‘gut feel’ t...