Isaav Asimov Asks, “How Do People Get New Ideas?

Author: Isaac Asimov
Source: MIT Technology Review (https://www.technologyreview.com/s/531911/isaac-asimov-asks-how-do-people-get-new-ideas/)
A 1959 essay by Isaac Asimov about Creativity -what makes creative people succeed, how to identify people with a creative bent of mind, how to form a team of creative people and how to incentivise such teams. From creating new art forms to new scientific discoveries, the world needs people to come up with new ideas that takes mankind forward. However, creativity is not just a requirement in the world of art and science. Even in our own world of investing, we find Asimov’s thoughts quite apt for identifying talent and also the process of investment management itself – especially a) the ability to draw from a diverse pot of knowledge, making connections and developing new insight and b) the need to think contrarian and question conventional wisdom.
On the former, my colleague Saurabh Mukherjea recently wrote in his blog about the best exponent of this theory – Charlie Munger (see here).
“One way of investigating the problem is to consider the great ideas of the past and see just how they were generated. Unfortunately, the method of generation is never clear even to the “generators” themselves. But what if the same earth-shaking idea occurred to two men, simultaneously and independently? Perhaps, the common factors involved would be illuminating. Consider the theory of evolution by natural selection, independently created by Charles Darwin and Alfred Wallace.
There is a great deal in common there. Both traveled to far places, observing strange species of plants and animals and the manner in which they varied from place to place. Both were keenly interested in finding an explanation for this, and both failed until each happened to read Malthus’s “Essay on Population.”
Both then saw how the notion of overpopulation and weeding out (which Malthus had applied to human beings) would fit into the doctrine of evolution by natural selection (if applied to species generally).
Obviously, then, what is needed is not only people with a good background in a particular field, but also people capable of making a connection between item 1 and item 2 which might not ordinarily seem connected.
Undoubtedly in the first half of the 19th century, a great many naturalists had studied the manner in which species were differentiated among themselves. A great many people had read Malthus. Perhaps some both studied species and read Malthus. But what you needed was someone who studied species, read Malthus, and had the ability to make a cross-connection.
That is the crucial point that is the rare characteristic that must be found. Once the cross-connection is made, it becomes obvious. Thomas H. Huxley is supposed to have exclaimed after reading On the Origin of Species, “How stupid of me not to have thought of this.”
But why didn’t he think of it? The history of human thought would make it seem that there is difficulty in thinking of an idea even when all the facts are on the table. Making the cross-connection requires a certain daring. It must, for any cross-connection that does not require daring is performed at once by many and develops not as a “new idea,” but as a mere “corollary of an old idea.”
It is only afterward that a new idea seems reasonable. To begin with, it usually seems unreasonable. It seems the height of unreason to suppose the earth was round instead of flat, or that it moved instead of the sun, or that objects required a force to stop them when in motion, instead of a force to keep them moving, and so on.
A person willing to fly in the face of reason, authority, and common sense must be a person of considerable self-assurance. Since he occurs only rarely, he must seem eccentric (in at least that respect) to the rest of us. A person eccentric in one respect is often eccentric in others.
Consequently, the person who is most likely to get new ideas is a person of good background in the field of interest and one who is unconventional in his habits. (To be a crackpot is not, however, enough in itself.)
…If a single individual present is unsympathetic to the foolishness that would be bound to go on at such a session, the others would freeze. The unsympathetic individual may be a gold mine of information, but the harm he does will more than compensate for that. It seems necessary to me, then, that all people at a session be willing to sound foolish and listen to others sound foolish…”

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Note: The above material is neither investment research, nor financial advice. Marcellus does not seek payment for or business from this publication in any shape or form. The information provided is intended for educational purposes only. Marcellus Investment Managers is regulated by the Securities and Exchange Board of India (SEBI) and is also an FME (Non-Retail) with the International Financial Services Centres Authority (IFSCA) as a provider of Portfolio Management Services. Additionally, Marcellus is also registered with US Securities and Exchange Commission (“US SEC”) as an Investment Advisor.