"You need a story to displace a story. Metaphors and stories are far more potent (alas) than ideas; they are also easier to remember and more fun to read. If I have to go after what I call the narrative disciplines, my best tool is a narrative. Ideas come and go, stories stay." Nassim Taleb, The Black Swan
Relating this to investing, here are a couple of questions I have on my investing checklist about this topic:
- Am I falling for a good story?
- Are you sure you're not falling for the confirmation bias? (i.e. Have you approached the facts and data with a suspension of belief, rather than looking to confirm a theory or investment case/story?)