As we enter 2019, I will also be beginning a new series covering one really good book that I would like to digest very slowly. After some deliberation, I have decided to cover Scott Page’s The Model Thinker as it suits the level of an intermediate to advanced reader.
Naturally throughout the series, I will be personally trying to show-horn to adapt the ideas in this book to my personal style of investing. I hope that readers will find this new column useful and information.
Today I will be covering the Hierarchy of Wisdom. It is a great way for a novice to start thinking about models and how they can clarify things for us.
The Hierarchy of Wisdom consists of four ways in which we can explain the phenomena around us :
Anything that lacks meaning can be considered data. Data can be a timestamp or a string of 1s and 0s. For