Nature and Wisdom

I finished Darwin’s Origin of the Species this week. My plan is to try find intersections between Natural Selection and investing. I suspect there are several mental models we can derive from his work that might be surprisingly applicable to our field. It is a daunting task, however, and I am not really sure I can properly articulate what I’m abstractly seeing as potentially useful.

While reading Charles’ book, an idea came up, which I think deserves exploration. Never have I encountered an appropriate definition of wisdom, nor of what the concept entails. Possibly attributable to the fact that one is facing an infinite problem with finite resources. Nonetheless, there is a connection of ideas that I believe can provide solid ground to build upon. Further, its utilization may be profitable in multiple verticals.

Natural Selection or Survival of the Fittest

The Origin of Species is a masterpiece. It puts into perspective how great research looks like. Prior to its writing, Darwin had mastered naturalism, biology and geology literature. And this was coupled with numerous experiments he did himself, while traveling everywhere. All observations and information collected acted as a form of shapeless collage. The Origin of Species is where Charles tries to delineate the phenomenon that connects the dots. Natural Selection was the resulting theory.

All organic beings are severely exposed to competition. When species yield offspring, the latter carries some of their progenitor(s) characteristics, but distinction and variation occurs on certain dimensions. Some of these better equip individuals for competition.

As far as I can tell, organic beings possess a fundamental and underlying code. Namely, the ultimate intention is to increase in number. Because resources are limited, physical space is competed upon. Competition posits the struggle for life and Natural Selection is what helps deal with this. Natural Selection is the mechanism by which the most profitable variations are kept and passed on to new generations. Competition causes best-suited variations to yield offspring. Hence why Darwin’s theory is called Natural Selection or Survival of the Fittest.

The Thesis for Thoughts

One of humans’ unique traits is our capacity to imagine. In fact, Harari posits that collaboration in great numbers was attained by imagination. A lack thereof would make impossible the task of foreseeing pathways forward. Running simulations in one’s mind improves our future inputs.

I heard somewhere that thoughts exist for them to die instead of ourselves. I find this statement peculiarly appealing. Many of our thoughts are virtual replications of the world, wherein abstract characters of ours get to live.

Wisdom

I think it’s Naval who said that wisdom is understanding the long-term consequences of our actions. My sense is that the concept is accurately encapsulated, but it lacks a form and body.

Maybe nature embedded within us consciousness and capacity to think due to imagination. Running simulations allows for the visualization of multiple decisions we can make. Hypothetically, if nature was capable of creating virtual potential variations of current species, species’ rate of progress would be driven insurmountably up.

Wisdom, I suspect, is about imitating nature. Every time we make a decision, numerous roads can be taken. Correct judgment implies taking the route wherein the best version of oneself lives, so that it becomes a reality. For it is not wise to choose variations of oneself whose underlying characteristics aren’t the most profitable.

On a final note, I started reading Adam Smith’s The Theory of Moral Sentiments. Here’s where Smith laid the foundation for all of his work.

My preliminary hypothesis on this line of reads is that it is impossible for my signals to not acquire a unique trait. My capacity to think in dissonance with the market should derive from mental inputs, reads. In consequence, my investing profitability, if it materializes, should be largely explained by the factor of worldly wisdom.

 Personal Commentary

This is a fascinating and promising idea. Unfortunately, I could not take it past its premature form. Hope my subconscious refines this and allows me to bring it improved in the future. Hope you enjoyed today’s piece and really looking forward to bringing more from Darwin!

Open to Work

If you would like me to write something for you, including equity research, contact me at giulianomana@0to1stockmarket.com