Legendary investment sage, Warren Buffer, was speaking to a journalist about the financial crisis of 2008 when he came out with a fairly accurate summary of how good ideas go bad. Buffet said... there's a "natural progression" to how good new ideas go wrong. He called this progression the "three I's." First come the innovators, who see opportunities that others don't. Then come the imitators, who copy what the innovators have done. And then come the idiots, whose avarice undoes the very innovations they are trying to use to get rich.

I reckon that cycle applies to many new ideas not just those dreamed up by traders at investment banks.

You can read more on the Harvard Business Review website.

Bookmark and Share