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.
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.
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.
RépondreSupprimer