When an unpredicted event occurs, we immediately adjust our view of the world to accommodate the surprise.
A general limitation of the human mind is, its imperfect ability to reconstruct past states of knowledge, or beliefs that have changed. Once you adopt a new view of the world (or of any part of it), you immediately lose much of your ability to recall what you used to believe before your mind changed.
Business – When businesses running well then businessman start thinking that business is always going to do well and they start making huge Capex for it. Or they feel that a strong business environment will remain to continue and business has more value creation left (top of the cycle) so they will announce a buyback. Such things happen especially with cyclical businesses.
Investment – When we keep evolving with the new process, philosophy to invest then we start replacing it with an older one which helps us to make the best of ourselves. But with it, we should not forget good things about the previous process, mistakes made by us in an older process because these all help us to keep evolving over some time. We should document our learning over a period so that we can evolve in a better way by retaining our previous learning. We have seen the evolution of Legendary investor Mr Buffett, who has evolved from ciggarbutt to moat investing but still he has not forgotten his learning from a past strategy.