The more we learn, the more questions we have. But the reverse is also true. The fewer questions
we ask, the less we know. This is why poor students often feel more successful than the brightest in
the bunch. They lack insight into their own limitations. In other words, without an appreciation for the
vast body of knowledge out there, it’s impossible to know how little they know. The first principle is that
you must not fool yourself – and you are the easiest person to fool.
In the field of psychology, this cognitive bias is known as The Dunning–Kruger Effect. It comes from
the inability of people to recognize their lack of ability. Without self-awareness, it can be challenging to
evaluate competence or the lack thereof. Said differently, the more incompetent you are, the less you’re
aware of your own incompetence.
~ Christopher Pavese, CIO of Broyhill Asset Management,
The Broyhill Letter, August 2020
