What's your biggest worry when you are about to meet a few strangers?
Predominantly it's about behaving in a certain way to impress or at least leave a good impression with the people we have never met before. We are constantly worried about our image, be it the office, friends, family or at any random place you happen to be .
We get so grossed up trying to impress everyone around us that we eventually forget who we really are. It's the easiest to fool your own self. Over time we just become what we think resonates with the outer world. We become a product of our experiences of trying to impress others. It's called as keeping an outer scorecard.
We don't do what we like,
We don't even do what others like,
We do what we think people want us to do.
So basically we act on the basis of our “prediction” of what the popular opinion is. So when the foundation of our every action is a “prediction”, you can imagine how miserable our lives will turn out to be. The increasing tendency of judging yourself by the way people perceive you is what leads to depression, lack of self esteem etc. Warren Buffet advocates keeping an inner scorecard wherein you judge yourself through your own introspection with an ethical lens. This not only leads to upliftment of our ethical standards but also gives us the courage to stand apart from the crowd and dare to be different. Look around you, you will find that all successful people were ridiculed by the society at some stage. One of the reason they were successful was because they did not keep an outer scorecrad.
Fearing rejection or failure comes from keeping an outer scorecard, whereas keeping an inner scorecard helps us in thinking out of the box. Not seeking social recognition can be hugely liberating and can work wonders. Imagine what would've happened if Sachin Tendulkar kept an outer scorecard during his school days, he would have been forced to study well by his teachers and peers.
It's important to keep an inner scorecard in investing
Now why am i writing about a seemingly moralistic subject on a finance website ? That's because it's all pervasive....nothing is isolated in this world. We think we are good at compartmentalization but more often than not, we are just mediocre at it. In investing, it's important to be contrarian, which means we need to live with going against the tide and ignoring a lot of "intelligent advise". This is extremely hard to to achieve until we actually practice keeping an inner scorecard in our daily life as well. It cannot happen that we keep an outer scorecard in our daily life but as soon as it comes to investing, we expect to be isolated from the mass opinion. We will only make money in the market when we place a contrarian bet and stick to it with extreme patience, which will only happen if we start keeping an inner scorecard.
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