Revisiting practice of Second Level Thinking, when investing and living your life

We inhabit a world of trial and cancellation by media; one where sociopaths mostly roam free from society's sanction; where corrupt corporations fool unaccountable auditors and, if caught, argue that repayment of ill-gotten gains clears the slate. A depressing state of affairs. But for the rational mind, a solid defence does exist.

It's what investment guru Howard Marks refers to as Second Level Thinking, a practice of deliberately and methodically reaching beyond the obvious. Something that requires reflection and deeper thought. And a reminder that because very little is as it first appears, suspending judgement is the best way to avoid needless mistakes.

Marks describes first level thinking as "simplistic and superficial, and just about everyone can do it." It's employed by 99% of humanity who seek immediate solutions to problems with no thought of potential knock-on effects. Like filling in potholes ahead of a Blue Light Brigade drive-by. Or adding to National Debt by caving to public sector wage demands.

___STEADY_PAYWALL___