Even though we have more financial data than ever, investing is just as much an art as it was when Ben Graham criticized it almost a century. Investing is not a hard science like chemistry or physics and there are no laws or unbreakable rules although data-driven models do work every now and again. Equally smart people can have opposite views and, oddly, be equally successful.
Although I said it is art first, having a good grasp of subjects such as mathematics, finance, accounting and economics is still very important. However, there are also other subjects that one must understand in order to be successful in investments. These may include the following: political science, history, sociology and psychology.
Apart from crunching the numbers, having a healthy appreciation of the arts can help investors synthesize seemingly disconnected events in order to come up with more informed investment decisions!
The writer is an RFP® - registered financial planner of RFP PH, Licensed Real Estate Broker and Director of CERTA, Inc., a family estate planning and investment advisory firm. To know more, please visit www.certa.ph