Cyclical Knowledge Teaches Us to Repeat History

Knowledge in various fields can be categorized into two types: cumulative and cyclical. Cumulative knowledge, as seen in fields like medicine, builds upon the knowledge of previous generations, enhancing understanding and advancements. In contrast, cyclical knowledge, particularly in investing, suggests that lessons are often forgotten, requiring each generation to re-experience and learn from past errors, such as issues surrounding greed, risk, and fear. This pattern of repeating historical mistakes underscores the importance of recognizing whether one is engaging in cumulative or cyclical knowledge, as it profoundly influences decision-making and learning processes.