LOGOS.

(Greek: “word,” “reason,” or “plan”) plural logoi, in Greek philosophy and theology, the divine reason implicit in the cosmos, ordering it and giving it form and meaning.

The idea of the logos in Greek thought harks back at least to the 6th-century-BC philosopher Heracleitus, who discerned in the cosmic process a logos analogous to the reasoning power in man. Later, the Stoics, philosophers who followed the teachings of the thinker Zeno of Citium (4th–3rd century bc), defined the logos as an active rational and spiritual principle that permeated all reality. They called the logos providence, nature, god, and the soul of the universe, which is composed of many seminal logoi that are contained in the universal logos. Philo of Alexandria, a 1st-century-AD Jewish philosopher, taught that the logos was the intermediary between God and the cosmos, being both the agent of creation and the agent through which the human mind can apprehend and comprehend God.

-Encyclopedia Brittanica

WHY ARE WE DIFFERENT?

We evolve.

We understand that history is the study of change which, ironically, is used as a map for the future. Investment history matters, yet if one relies too heavily on it, one will likely miss the outlier events that move the needle most.

The majority of what is happening at any given moment in the global economy can be tied back to a handful of past events that were nearly impossible to predict.

Think: The Great Depression, WWII, Antibiotics, September 11th, The Internet and Covid-19 to name a few.

The most common denominator of economic history is the role of surprises. The danger investors face is taking the worst and best events of the past and assuming they will occur again in the future. They make the assumption that a history of unprecedented events doesn’t apply to the future. This isn’t a failure of analysis but a failure of the imagination.

Instead, we believe that the future might not look anything like the past and this need for imagination grounds our approach to investing. We understand that the things that will move the needle the most are the things history gives us no guide to understanding or necessarily predicting.

We also understand that history can be a misleading guide to the future of economies and stock markets as it has difficulty accounting for structural changes that are relevant to today’s world.

Historical theories about recessions, interest rates, inflation and purchasing stock often look tired when applied to today’s world. We take cues from the past, but believe in the power of adapting such learnings to the present.

Constant experimentation, retesting of assumptions and adaptation is crucial for lasting investment success. The further back in investment history you go the more likely you are viewing a world that no longer applies to the present moment.

Human nature and human behaviours tend to be stable over time, yet specific investment trends, causal relationships and strategies are constantly evolving.

We at Logos LP feel confident that we can evolve along with them.