Simple things matter

No one wanted the pandemic. It is, nevertheless, an opportunity to learn. In this post, I will reflect on one of my most important learnings from this experience: simple things matter.

There is a lot of angst around covid. Some simply seem not to care; others have fully holed themselves in. My approach is simple. We must endeavor to lead near-normal lives whilst doing simple things (following good hygiene and some social distancing) to contain the spread. Indeed, having spent a quarter on the UChicago campus, I can say with some degree of conviction that small measures can go a long way. If people wear masks, use hand sanitizer, and form well-defined social bubbles, we can not only contain covid, but can also lead fairly, albeit not entirely, normal lives while we are at it!

I see parallels to this in investing, which too is all about responsible risk-taking. Doing seemingly simple things like focusing on the long term, limiting oneself to one's sphere of knowledge, and emphasizing management quality can help avoid blowups, the equivalent of a covid outbreak perhaps. This is a lot of the job done! Indeed, as Howard Marks says, "If we avoid the losers, the winners take care of themselves." The reverse of this logic also holds true: if we fail to do the small things right, we are more likely to have a covid outbreak, or make a terrible investment. And a single blowup can negate the effects of several good decisions.

It's all about the little big things!