Applying the differential diagnosis method to investing
For those of us in the field of medicine, the differential diagnosis method is second nature. It involves considering a list of potential causes (differential diagnoses) for a patient’s symptoms and systematically narrowing down the possibilities through evaluation, testing, and clinical judgment. This method helps us arrive at the most likely diagnosis and, subsequently, the most appropriate treatment plan.
Now, let’s apply this concept to investing.
Symptom recognition in investing
In medicine, patients …