Showing posts with label understanding stock market. Show all posts
Showing posts with label understanding stock market. Show all posts

Tuesday 14 August 2012

"Understanding" versus "Knowledge"

You can put knowledge in a book and sell it.  But not understanding.

To understand is to combine knowledge with experience.  Not someone else's experience: your own.  Experience only comes from doing, not from reading about what someone else did (though that can add to your knowledge).

The meanings of these two statements are clearly different.

Mr. A has a good knowledge of investing.
Mr. A understands investing.


Knowledge usually means a collection of facts - a "persons's range of information," or the "sum of what is known."  But "understanding" implies Mastery - the ability to apply information and get the desired results.