Hey everyone, hope you enjoyed our post last week on how we can look for super stocks. There was actually a key component that I left out of the article, because I had no interest in making it longer than it is. That concept, reflexivity, is what we will talk about today.
Reflexivity, what it is and how it applies to Investing
Reflexivity, generally, is defined as the ability to examine the cause and effect relationships between the observer and the observed. It asks the question, “What role do I, as the observer, play a role in determining the effect that I observe?”. If you take a moment to think about it, it’s actually quite a deep question. It’s like trying to observe an electron in physics. You cannot observe that an electron is present unless you excite it. Otherwise, you can only infer that it’s there. (Which is a real mind blast if you think about it).