Running & Investing – The Johari Window

The Johari Window was developed in 1955 by two psychologists Joseph Luft and Harrington Ingham to help people better understand their relationship with themselves and others. 

Johari window involves a simple grid of four quadrants each representing a different area for runners/investors to consider about themselves as well as getting advice.

  1. Open Area: What is known by the runner/investor about him/herself and is also known by public. This information is out in open. 
  2. Blind Area: What is unknown by the runner/investor about him/herself but which is known by others as well. Information is known to others and not known to self
  3. Hidden Area: What the runner/investor knows about him/herself that others do not know. Information runner/investor has chosen not to disclose. 
  4. Unknown Area: What is unknown by the athlete /investor about him/herself and is also unknown by others. This information is unknown to both runner/investor & others as well.

Runner’s Johari Window

Runners develop their training plans with sole goal in mind to perform better than their last race. A runner’s training plan may be influenced by co -runners or a mentor. 

A runner needs to be aware of both 2nd (Blind Area) and 4th quadrant (Unknown Area).

A runner, subconsciously is aware about blind area but don’t acknowledge it; for instance, I am aware that strength training is a must for building strong running engine, but I don’t give adequate weightage to it. 

It’s the UNKNOWN which a runner needs to prepare for; could be unexpectedly high number of runners in holding area that results in too much runners in front of you, a route change before race that might throw some inclines or U turns, a slip leading to injury OR unscheduled loo break!

In the words of Doris Brown Heritage “When you put yourself on the line in a race and expose yourself to the UNKNOWN, you learn things about yourself that are very exciting.”

Investors Johari Window:

While investing we typically customize solutions basis the information shared in the 1st quadrant “Known to Self/Known to others “.

Basic data points:

  • How much is my cash-flow?
  • How long before my child’s education/ marriage or my retirement?
  • I understand my risk ability and take decision accordingly

While setting on investing journey; one needs to be aware of top right quadrant- referred as Blind Area & fourth quadrant Unknown Area.

What can hamper your wealth creation journey?

Well these are more nuanced pitfalls of the top right corner – the blind spots – it represents in your investment thesis.

What do you do about it?  

Well, as they say, admitting that there’s a problem is the first step. 

One can improve on blind spot areas and put a process & investment framework in place.

Having said that, one must be prepared to face the Unknown along the wealth creation journey. 

Identify your blind spots and strengthen the ability to face unknown in the portfolio, before they catch you unaware!

Content – Ajeeth Kaushal 

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