Biomimicry is a new concept which studies nature and uses those designs to solve human problems. So how does that apply to investing? Ever wondered about the nature of investing? After a successful career in equity research, Collins studied theology and the natural world and found strong parallels with the investment world… simple things like the efficiency nature constantly strives for. Collins introduces this new term – biomimicry – that essentially asks investors to pause before their investment decisions and ask themselves, what am I doing this for and how would nature go about making this investment decision… or WWND – What Would Nature Do?
For example, how does nature approach growth, and what can we borrow from nature on how to grow our portfolios. What’s worth keeping and what’s worth trimming out (in your portfolio)? How can we leverage a natural system’s “feedback loop” and use multi-dimensional factors to influence our investment decision-making? Interesting ideas on how nature can help improve investment decisions!