vendredi 9 février 2018

Invest now or later?

In that period of worrying we’re going through, what should we do as investors?

1. Buy everything we can;
2. Buy here and there, all along the year;
3. Doing nothing;
4. Sell some positions or lighten them in view of something worse;
5. Sell everything because everything's gonna be cheaper soon. 

You surely ask yourself these questions. 

This article says that people fully invested usually beat people who put their money on the market gradually. The logic behind that study is that we’re rewarded for the risk we take. And people entirely invested take more risks than those who keep money away from the market. 

I have a little difficulty to accept this truth. I believe that we should always have a little money left because when there’s a sudden drop in the market, it’s great to be able to take advantage of it instead of having to sell something to buy something else.

But, fuck, science says you shouldn’t do that. Who are you to argue with science? Science is why we’re here now. Without science, doctors wouldn’t exist. Just chamans. And chamans would treat cancer with herbs and some tribal dance instead of that great chemotherapy.

But we all believe in our own vision and logic. So we reject science. And we reject Chuck Akre. And we say to ourselves: “I can do better”.

And, in the end, you do nothing great, because you’re average people. The only way you can become great people is to copy great people and don’t tell it to anybody. So, the credit of greatness will be yours. And if somebody discovers the truth, you pay someone to kill them. That’s how every great person has done. They’re all murderers. 

1 commentaire:

  1. There was a study done at one of the big brokerages (i think it was Morgan Stanley) that analyzed the best and worst performing client portfolios over 10 year holding periods. Whatever time period they were using, the median return was a sub-par + 2%. The winning group of clients were making double digit returns annually. They were all DEAD and had not had any activity in many many years. A telling study.