Does due diligence matter?
Trusting your gut vs due diligence
Welcome back and happy Friday!
Today I wanted to discuss my response to the below meme - which was very well done, if I may so myself (shoutout to Eli!).
By the way, the investment in the original post was actually just made! Fascinating story in its own right.
The short explanation of the meme: while the majority of people think due diligence is important, higher & lower IQ investors both think you should just trust your gut.
For those of you who are unfamiliar with the meme format (or probability distributions), I’d encourage you to read this over coffee this weekend - it’s actually pretty well done!
The question I’d like to discuss today is to what extent is the above meme true? To what extent does due diligence ACTUALLY matter?
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