The Kolb Learning Model and Investments

 

The Kolb Learning model is a simple four-point approach to improving the learning experience. Start with some specific experience, which should lead to some reflective observations. What did you feel? Then, what did you see? 

The observing must be then placed in context which is conceptualized thinking. The thinking finally must be converted into action, or active experimentation which will, of course, lead to a new experiences. This is often referred to as Experiential Learning Theory (ELT). People learn by direct experience and is an effective way to teach young students. It is a learning style.

This is not different from following any scientific hypothesis testing. See, observe, conceptualize or hypothesize, and then test. Yet, it is useful to form simple frameworks for thinking based on our direct experience. 

The Kolb learning model or ELT can also be used with making investment decisions through linking a specific observation or experience to forming a hypothesis.