Ockham's Razor
"All things being equal, the simplest solution tends to be the best one."
In other words, when multiple competing theories are equal in other respects, the principle recommends selecting the theory that introduces the fewest assumptions and postulates the fewest hypothetical entities.
Ockham's razor is a principle attributed to the 14th-century English logician and Franciscan friar William of Ockham. The principle states that the explanation of any phenomenon should make as few assumptions as possible, eliminating, or "shaving off," those that make no difference in the observable predictions of the explanatory hypothesis or theory.
Ockham's razor is an intelligent investor's best friend.
1 comment:
I was running a Google search surrounding my own company, when I saw your brief write-up on Ockham's Razor.
I couldn't agree more with you.
Simple and obvious are not synonyms. Each investor must understand that simple takes years to analyze and is a constant journey, as the visual on your homepage portrays.
Thanks,
Christian Ward
CEO
Ockham Research
www.ockhamresearch.com
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