Defining Definition

While typing a list of definitions to words that are pertinent to investing with a contrarian point of view I had another mild epiphany.

It has taken me a long time to un-learn the things that I have been taught. That is the reason behind the exercise of defining words based solely on my own opinion. It reaffirms my belief in what the words mean to me. I was trying to explain the meaning in plain text. As an example I defined commodity simply as, "something you can put in your hand". That is not to websters standards, but is too simple to mess up.

More complex words came to mind that I felt needed defining like value and asset. While trying to simplify my definitions, a thought started boiling up in my head so thick that I could not stay on task. Why is it, that matters of opinion have already been defined for us?

As a junior contrarian at heart, the fact that I was taught and told what an "asset" is and what its "value" is, is now a slap in the face. I was never given an opportunity to determine what somethings value was on my own. I never determined/defined on my own what an asset was. I was told, and I listened.

As my mind raced about those two definitions alone, and what they meant to me, I realized that the very dictionaries I've owned since childhood are filled with the opinions derived by other people and societies of the past.

I am allowed to determine on my own what to eat, who to marry, where to live, where to work, and what I want to do for the evening. I am given the freedom to make those choices and enjoy the repercussion of their meanings good or bad.

As far as the words that we use in the language that we speak, well, we have been given a long list of words with a prescribed, clearly defined meaning. Some of the words have multiple meanings so that we can pick and chose what works best at the time with the given application. That gives us the choice to interuput a words meaning within a set of limits. It keeps us all in line. While a dog is a dog, there are many kinds of dogs, but they are all still dogs.

Sounds great until your interpretation of a word contradicts the meaning that another person has given it. It becomes worse still if your meaning of words opposes that of the main stream. You realize quickly that your individual thoughts and ideas have got to have some backbone. You will need to be able to defend why you would have the audacity to define something differently than that which has already been given to you.

This is the point: For you to understand anything, YOU must understand it for yourself. Put it in your own context. Let it make sense to you. If someone else tells you what something means let them prove it or prove it yourself. I am not talking about words like shoe and toast, I am talking about words related to investing, like asset, value, and even the word investment itself.

If I call gold an asset because it is in my hand, has international value, can not expire, and is no one elses liability then that is what an asset is... to me.

If you call your 401k stock portfolio an asset because it has increased in dollar terms this year, has the benefit of compounding interest, is not taxed(yet), and could be withdrawn if you need it then that is what an asset is... to you.

This revelation has now only solidified my presence in the contrarian camp. I use the words of Thomas Jefferson, "We are not afraid to follow truth wherever it may lead, nor to tolerate any error so long as reason is left free to combat it." to help guide me through the quest of defining important words using my own reason.

Use your own life experience and reason to develop the true meaning of words in your own context. Don't be afraid to question the knowledge that was given to you, only trust what you have done for yourself.

I can now continue to build my own dictionary as I, in length, have defined definition... to me. ---C.H.