Know your self (KYS)

The main difference between hearing and listening is that hearing is a passive physiological process, while listening is an active psychological process that requires effort and attention. There are many times when we all listen selectively. My friend visited a doctor once. He advised her to eat a healthy diet and offered her a concession for an occasional glass of wine. All she heard was the part about the wine. This is a classic case of 'confirmation bias', a human tendency to only seek information supporting one's beliefs or ideas. A similar situation occurred with a prospective client who was dissatisfied with his large-cap-oriented PMS (portfolio management services). He wanted to move lock, stock and barrel to mid- and small-cap focused portfolios. We suggested otherwise and told him it was not the best time to take such a drastic step. Plus, valuations were in favour of large-cap sto

This article was originally published on October 20, 2024.