Monday, October 5, 2009

Teaching cops to observe - Investors could use some help here


An article in the Smithsonian called "Teaching Cops to See: Amy Herman uses art to sharpen police officers observation skills" caught my attention. The power of observation is critical for policemen. They need to see who is dangerous around them. They need to observe and see the details of a crime scene, yet the power of observation often alludes most of us. The Met has developed a program where an art historian will spend a class with police detectives to have them look at paintings The policeman are not supposed to say that "something is obvious". They need to use words to describe what they see. They have to be descriptive for what they see. For example, why are figures placed in a composition or colors used within the work?

The gains from observation can apply to all professions. Financial analysts need to see the markets they are looking at through observing linkages with the broader economy. They need to observe the foreground and the background of the macroeconomic environment. They have to look for outliers within financial statements. They should read footnotes to comprehend the details. What is going on in the mind of the company when they generate a press release. All of these issues are relevant when observing what is going on with an investment and require a keen eye for detail. This skill has to be exercised and developed.

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