TWX: Taking Stock of Old Opinions

“An individual has a stock of old opinions already, but he meets a new experience that puts them to strain. Somebody contradicts them; or in a reflective moment he discovers that they contradict each other; or he hears of facts with which they are incompatible; or desires arise in him which they cease to satisfy. The result is inward trouble to which his mind till then had been a stranger and from which he seeks to escape by modifying his previous mass of opinions.”

 – Investing: The Last Liberal Art by Robert G. Hagstrom

We recently revisited our investment in Time Warner (TWX) given the market’s “new experience” in the media sector.  This is an exercise we practice often to ensure we’ve considered all possible outcomes; to avoid rigidly hanging onto a stock of old opinions; and to remain open to new ideas.

As TWX remains one of our largest positions today, we are sharing this investment memo with investors and friends. You can access our recent notes here or by clicking the image below.

“This is how knowledge progresses” or according to Hagstrom:

“Pragmatism, in summary, is not a philosophy as much as it is a way of doing philosophy. It thrives on open minds and gleefully invites experimentation. It rejects rigidity and dogma; it welcomes new ideas. It insists that all possibilities should be considered, without prejudice, for important new insights often become disfigured as frivolous, even silly notions. It seeks new understanding by redefining old problems . . . We learn by trying new things, by being open to new ideas, by thinking differently. This is how knowledge progresses. In short, pragmatism is the perfect philosophy for building and using a latticework of mental models.”

TWX Research Notes Image