Wednesday, September 05, 2007

Becoming an expert

After posting Monday's expert quiz, I decided to do a quick Google search on the "are you an expert?" theme. I found some more useful info on this topic right off the bat, and thought I'd share it with you.

While Monday's "Are you an expert?" quiz demonstrated that most people are overconfident when making forecasts, today's info is a little bit different in nature.

Instead of focusing on most people's tendency to view themselves as experts, we will learn exactly what it is that makes someone an expert in a given field or activity.

We'll also learn about expert performance, and whether or not experts provide value in assessing situations and solving problems. Should be interesting, especially since these lessons are applied to the field of investing.

Here then, is Legg Mason Capital Management's take on expert performance, "Are you an expert?" (PDF).

Written by Michael J. Mauboussin, this piece makes an excellent follow up to our recent quiz, and should provide some insight on the characteristics shared by true experts, and their place in the world of investing.

Hope you find it worthwhile, and enjoy.