Accept Reality or Pretend: Your Choice
Feedback today that sums “it” up nicely:
“I believe that most people prefer to think that a ‘business approach to investing’ just makes sense - plain and simple. Though if you bring the discussion further, and really delve into what that means, and specifically, how it’s reliant upon prediction, then you get a lot of blank stares. People have told me that they might not know the ins and outs of how their money manager is making decisions, but they know he is using ’sound investment principals’ and they feel safe with that. When I bring up price being the real-time determinant of value, when I bring up money management and systematic trading decisions, as a clear way to be actively involved in your chance of turning your nest egg into an eagle, I get a lot of negative responses. The feedback I get is that people want to think that you need to be a hard working detective to really dissect these companies, understand the businesses, know the management, read the economy and then make an investment based on these ‘facts’. They really would rather have that, and pay for that, and buy into that - then work on themselves and take responsibility. I certainly don’t think everyone is that way, but it seems that the majority is.”
