The world is becoming a more transparent place. Thanks to the internet, more information is now freely available than ever before. Gate keepers have lost power and barriers to entry are now lower than they ever have been. Consequences of this are that old guards are ushered out and transitions are never easy. But those willing to embrace the transition that were once benefactors of gate keepers can thrive.

Investment management has long been a benefactor of ambiguity. High transaction fees, restricted access to information, and creating useless complexity to imply a “don’t try this at home” warning all were wonderful tools to help enrich the industry. But those walls are falling, and we are better off for it.

“I don’t do it for the gram I do it for Compton.” – Kendrick Lamar

“Learning in public” is the new buzz phrase that everyone is adopting. I think Patrick O’Shaughnessy deserves credit for being the first to adopt it and create an empire around it. But like some good things, I feel like it has become perverted and is now used a signaling tool more than anything. Rather than exploring curiosity and experimenting, it has become an excuse to brag about one’s social circle or gain notoriety. It doesn’t feel genuine. It is the Instagram model/influencer of Twitter.

I don’t mean for this to be negative. Transparency and learning in public are better for the world. I have gained more knowledge from people sharing than I can ever hope to give back. But what I think is missing from learning in public and transparency is failure. Failure itself feels awful because you spent so much time analyzing and working just to end up being wrong. Add a dose public scrutiny from a world of Anton Egos and it no wonder we do not want to share our failures in public. But the world needs to see that failure.

Paul Graham’s essay Early Work talks about why it’s better to start working rather than wait for perfection, even if you are embarrassed by the first iteration of that work. Neil Gaiman talks about needing to clear out the brain’s equivalent of the backup of a water pipe before the good creative work can come to fruition. It’s better for the world if we can see the first iteration and the crap that is clogging the pipes so we can know that success isn’t always presented as a beautifully wrapped gift.

Connor Haley tweeted about the negative feedback small investment managers receive when they post bad results. But these managers should be applauded. The courage to build your own business warrants praise but to also be willing to share short-term failures is a gift we should appreciate.

I am going to walk the walk and become more transparent. On top of continuing to publish reports, I will also be posting my portfolio every month along with commentary. This will not only hold me accountable and allow me to document my decisions, but hopefully show that temporary failure can lead to success. At the very least we are going to see the truth of who I am.

“Investing is a search for truth. It requires you to know who you are. It requires you to see your biases and perceptions as they really are. It requires you to see yourself clearly, before you can see something else clearly. Truth doesn’t allow for a big ego and doesn’t give a s*** about why you think you’re right. If you don’t know this going in, the truth is going to kick your ass.”

– Jim O’Shaughnessy