Honeybee Investing

Can investors learn from nature?

Photo: Louise Docker. Source: Wikipedia

A new book suggests that they should. Nature is infinitely resilient and adaptive, adjusting to changes in circumstances to improve its outcomes. Even in the harshest environments we find living things growing and reproducing. So we should expect the natural world to teach us some important lessons.

For example, economists have long been fascinated by honeybees. In 1705 Bernard Mandeville published “The Fable of the Bees” in which he outlined concepts like division of labor, the invisible hand, and the paradox of thrift. Condemned at the time, his work turned out to anticipate much later economic thought.

We can also learn by observing how honeybees form new hives. When they’re ready to move to a new location, they form a swarm. Individual insects spread out to gather information from their surrounding environment. Then they come back together to share this data. Eventually, the swarm collectively decides to move, and builds a new colony.

Honeybee swarm. Source: Wikipedia

The best investors are like bees, learning as much as possible about their investment universe and sharing this with their teams. They’re efficient with time and resources, but they also learn by trial and error. Also, they’re connected to their world—meeting with companies, clients, and service providers to make sure their goals and objectives are realistic and sustainable.

If we can learn from nature our investment process will be robust and adaptive. And the results should be sweet.

Douglas R. Tengdin, CFA
Chief Investment Officer
Phone: 603-224-1350
Leave a comment if you have any questions—I read them all!

Follow me on Twitter @GlobalMarketUpd

www.chartertrust.com • www.moneybasicsradio.com www.globalmarketupdate.net
By |2017-07-17T12:22:44-04:00June 17th, 2015|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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