Morgan Housel had another great piece entitled ‘The Art and Science of Investing‘. I like this part the most:
Building a valuation model is a science. Calibrating it to reflect the psychology of uncertainty is an art.
Gathering information is a science. Filtering out noise is an art.
Net present value is a science. Identifying the trust and passion of a CEO is an art.
Measuring what worked in the past is a science. Understanding why things are different now is an art.
I focus on the art side of investing. I can compete with my eyes and ears.
Seeing lots and lots of ideas and teams and charts and having a point of view gives me just as much of an edge as the computers and algos give the scientists.