Is Investing a Creative Process?

Is investing a creative process? Hard charging money managers resist defining what they do in terms usually reserved for artists. But if one defines a creative person – as does the American Heritage dictionary – as “one who displays productive originality,” there’s little doubt that successful investors fit the mold. To be sure, creativity isn’t possible without perseverance, effort and, of course, the right attitude. Edison went through more than 9,000 experiments in his quest to create the incandescent light bulb. When derided by colleagues for what they perceived to be the foolish quest, he responded: “I haven’t even failed once; 9,000 times I’ve learned what doesn’t work.”