hu·bris/ˈ(h)yo͞obrəs/noun
excessive pride or self-confidence.
Similar: Arrogance, conceit pride
History, both ancient and contemporary, is riddled with Hubris.
In Greek mythology, hubris shows up in their stories and poems. For example, let’s look at Homer’s The Odyssey. In the story, Odysseus displays hubris when, after blinding Cyclops, he boastfully tells him his name. In turn, Cyclops’s father, Poseidon (the Greek god of the sea), avenges his son by punishing Odysseus.
One of the better-known acts of hubris was Napoleon's invasion of Russia in 1812. His ego failed to take into account the resolve and tactics of the Russians, which ultimately led to the French Army's failure and retreat.
Conceit and a failure to acknowledge when one is wrong are examples of hubris. Most recently, Donald Trump decided that he knew best regarding the Coronavirus pandemic. This has been a contributing factor in the death of more than experts, resulting in more than 300,000 deaths.
The main danger of hubris is that it clouds one's judgement. This often causes such a person to make decisions that are bad for them and for others who are affected by those decisions. Unfortunately, many Investment Advisors are guilty of hubris.
Since hubris involves overconfidence in one’s knowledge and ability, it can lead investors to overestimate their ability to choose investments. This might result in higher or unnecessary risks. Similarly, and potentially more costly, hubris might cause an Advisor to overestimate their ability, and the validity and reliability of their intuitions. Particularly when investments they recommend are failing. Rather than admitting their mistake, they hold on (and on) to failing investments. To the detriment of their clients.
As Advisors, we must always be aware of the impact that hubris can have on our client's financial well-being. What is required are humility and an acceptance that we are bound to make mistakes. And that we try to correct them as quickly as possible.
When it comes to taking care of my client’s accounts, my approach is as follows:
Have a systematic, disciplined approach to money management
Identify when to buy, when to sell and when Not to buy
Be flexible
Always have an open mind and, finally
Check my ego at the door.
By following these principles above this provides a firm foundation to meet and exceed your goals. If this interests you, I would like to opportunity to meet and find ways to help you reach your goals.
“Avoid having your ego so close to your position that when your position falls, your ego goes with it”. Colin Powell
This material shall not be construed as a solicitation or an offer. The securities mentioned may not be considered suitable for all clients. Before making any investment decision, contact your investment advisor to discuss your investment needs. The information contained in this report has been drawn from sources believed to be reliable. Argosy Securities Inc. However, its accuracy or completeness is not guaranteed, and Argosy Securities assumes no responsibility or liability. Argosy, its directors, officers and other employees may hold positions in the securities mentioned herein.
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