How Can The Study of Survivorship Bias Make Us Better Investors?

[shamelesscloner]

This is a fascinating TED Talk about how survivorship bias skews our perception:

 

It's compelling to study the big winners in business in hopes that we improve our ability to pick future big winners. But as value investors, it's perhaps even more important to identify what causes companies to lose so we can avoid picking future losers.

 

How do you deal with the challenge of survivorship bias in your investing process? Is there an investing equivalent of putting armor where there are no bullet holes?

[dcollon]

This recent blog post has some similar ideas shamelesscloner portrayed in a slightly different way.

 

https://www.woodlockhousefamilycapital.com/post/the-lindy-effect

 

 

[shamelesscloner]

This recent blog post has some similar ideas shamelesscloner portrayed in a slightly different way.

 

https://www.woodlockhousefamilycapital.com/post/the-lindy-effect

 

Read that this morning, great post from Mr. 100 Baggers