Nature has abundance of convergence. Scientists have studied this phenomena in animals, plants, fungi and bacteria. In a study they found that different types of anoles(lizards) living in four different islands of Cuba, Jamaica, Hispaniola and Puerto Rico shared the same characteristics. For example the Trunk lizard in Cuba looks and behaves very similarly to one in Jamaica and Grass-bush anole of Hispaniola has the same characteristics to one in Puerto Rico. When a DNA analysis on these anoles was performed it revealed that these were not the same species genetically. When analyzed further it was discovered that the anoles e.g. tree trunk anoles living on the different islands developed the same physical and behavioural characteristics.
The anoles are a textbook example of evolutionary convergence wherein the unrelated organisms in similar environments develop the same body forms and adaptations differently.
Convergence in business symbolizes that there is a pattern to success and failure. Businesses around the world when facing similar challenges mostly behave and respond the same way. A simple convergence question to ask for is “have we seen this pattern elsewhere?”.
Be carefully when applying the principle as we humans are pattern seeking and we might discover one where there is none. Once in a while, on a rare occasion you might miss an investment which defies the convergence, but that’s worth a price paying (for me, may be for you too).
*My adaptation of ‘Bacteria and Business replay the tape’ described in the book ‘What I learned about investing from Darwin’.
Thinking Space 