In modern football, and by extension, contemporary life, one of the most disconcerting phenomena is the hyper-volatility in forming judgments. While life is inherently dynamic and ever-changing, the speed with which judgments are passed on individuals and events has detached itself from the natural ebb and flow of existence. Paradoxically, this volatility has become so obvious that it is now predictable.
Sit back and observe the daily spectacle unfold. Witness the rollercoaster of public opinion, oscillating from declarations of adoration to expressions of disdain and back to adoration within mere days. Marvel at how a player can be hailed as a genius, swiftly labeled incompetent, only to regain genius status all within a single week.
One reason for this constant shift in opinion is its allure to attention. Maintaining a stable stance on an issue for an extended period means you are no longer considered newsworthy; you cease to move at the frenetic pace demanded by our hyper-connected world, effectively rendering yourself "boring." If you hunger for attention, this can be an unsettling feeling.
To capture attention, one must either break news or, in the absence of fresh developments, reinterpret existing events to create the illusion of newsworthy headlines that draw people in. This cycle perpetuates itself because audiences have become as addicted to news as they are to any other substance. The line between what is genuinely newsworthy and what is not blurs, and what matters is satisfying cravings through endless scrolling.
What's even more intriguing is that those who frequently shift their judgments at such a frantic pace often fail to realize their own contradictions from just days prior. There's no time for reflection, no opportunity to absorb information and reassess one's evaluations. Information disseminated at breakneck speed leaves the source unaccountable.
The drawback of such volatility is far-reaching, permeating all aspects of decision-making. Asset owners and managers who succumb to this ultimately erode long-term value. Quick, impulsive decisions made in response to the fleeting whims of the moment may appease the hungry crowd, but they undoubtedly undermine long-term value.
Interestingly, this volatility is surprisingly predictable. For instance, when evaluating an asset's potential, closely observe how managerial decision-making correlates with the fluctuations in public opinion. The higher the correlation, the poorer the asset's long-term performance is likely to be. In contrast, making decisions that create enduring value requires old-fashioned patience and independent thinking. It requires people who are willing to be misunderstood. This is the immutable law of nature, which will always prevail, regardless of the fleeting dictates of the news cycle.
