In the recent history of quantum physics, over 300 years of particle warfare have been accomplished by countless physicists, including Newton, Hooke, Einstein, Bonn, Heisenberg, etc.; and one called Occam's Razor has played an important role in scientific research. Occam's Razor is a principle proposed by the 14th-century philosopher, Franciscan friar William of Occam, c.1285-1349; the principle is to admonish people not to waste more to do less that is equally good.
For scientists, there is a more common form of expression of the Occam's Razor Principle: when you have two similar solutions, you need to choose the simplest one: the simplest one is the most likely to be correct, or the simplest one is the best. This expression also has a more common strong form: if you have two principles, both of which can explain observed facts, you should use the simplest one until more evidence is found. For the simplest explanation of phenomena, the more complex explanation is often more correct. If you have two similar solutions, choose the simplest one.
Occam's Razor has been used in philosophy, science, and other fields, but it was in modern business administration that it became more widely known.
Good theory should be simple, clear, highlighted, and enterprise management theory is no exception. When managing enterprises to make decisions, should try to simplify complex things as much as possible, eliminate interference, grasp the main contradictions, solve the most fundamental problems, in order to keep the enterprise in the right direction. For modern enterprises, the explosive growth of information, making the factors that dominate the development of enterprises, make it more difficult to simplify complexity.
Investing requires strategy, not being too conservative, not taking too many risks in the investment market. Investment markets are complex, many investors spend a lot of time all day in busy analysis, research and frequent operations, investing a lot of energy, but still have difficulty in dealing with the huge amount of information in the market. When faced with complex investment markets, it is necessary to take the Occam's razor, simplify complex things, simplify your investment strategy, distinguish those things that consume a lot of money, time and energy, and then take steps to get rid of them.
The Occam's Razor is also a way of life. This principle requires us to grasp the essence of things and solve the most fundamental problems when dealing with situations. Especially to obey nature and not to complicate things artificially, so that things can be handled properly. Einstein said: "If you can't change the old way of thinking, you can't change your current state of life".
When using Occam's Razor, one should keep in mind Einstein's famous saying: "Everything should be as simple as possible, but not too simple".
This article is translated from the blog of QuantWay.