What is deemed wise in finance differs across generations, revealing the limitations of learned financial wisdom. Individual experiences shape financial understanding, leading to inevitable volatility and fragility that persist regardless of advancements in other fields. While medical breakthroughs may eliminate certain diseases, predicting a future free of economic instability and poor financial choices remains unrealistic. Financial knowledge is inherently cyclical, making past experiences crucial, yet often unheeded, in shaping future decisions.
In some fields our knowledge is seamlessly passed down across generations. In others, it’s fleeting. To paraphrase investor Jim Grant: Knowledge in some fields is cumulative. In other fields it’s cyclical (at best).