If you ever read the books or seen the shows about Sherlock Holmes, you were likely amazed and how he solved the case. In a book called Mastermind – How to Think Like Sherlock Holmes by Maria Konnikova, published by Penguin Group, NY, 2013 there are methods to be learned. Most of us are more interested in one subject or another and when asked about it can offer many insights. For example an experience home inspector will be able to look at your home and try to see into the framework of the house, however the same person may not be able to do the same for an automobile.

The Holmes method has 5 points:

1. Know Yourself  – and Your Environment   

Prior to making specific deductions, pause and reflect to and look at the bigger picture which allows you to put the details into context.

2. Observe – Carefully and Thoughtfully

Asking your yourself about the context and what is there? what should be there and is not? Try to examine the clues from different perspectives to see other clues. Give your self some time or patience to come up with ideas.

3. Imagine – Remembering to Claim the Space You May Not Think You Need

Imagination and creativity is used to think and pause about various options which can be rejected to move on.

4. Deduce – Only from What You’ve Observed, and Nothing More

We are people and we have biases and desire specific results, but are the clues really telling you that? try not to bring your biases into the conclusion.

5. Learn – From Your Failures Just as You Do from Your Successes

Practice, Practice, Practice and you will begin to make fewer mistakes, but learn from your mistakes.

Linking to dividend paying stocks, in choosing which investment to make you will need to continue to narrow your process and the method helps you narrow the choices. This blog believes by focusing on dividend paying companies, you will lose less money because those companies are profitable and although the stock market goes up and down in the long run profitable companies do better. Along the way, it is very good to receive income or a dividend.

There are more questions than answers, till the next time – to raising questions.