Thursday, May 29, 2014

     I am at the point in my life when I don’t want to hear anyone else tell me that thus-and-such is a great investment methodology.  If that someone isn’t willing to tell me about the great methodology and then explicitly describe how they have fared following that course for at least a decade, I’m just not interested!
·        I KNOW Warren Buffet is great.  I don’t need anyone to tell me that he is great and that Benjamin Graham and he have a lock on value-based investment strategy.  Give me your exact returns for the past decade (at least) so I can see how you’ve measured up using these great insights.
·        I also know that Peter Lynch was great.  My first investing experience was investing in Magellan when he was at the helm.  I have read his books and have heard him talked about for years.  What I what to see is this:  You are touting Lynch, show me your specific returns for the past decade so I can see how you have personally used this wonderful data.
·        Burton Malkiel and Charles Ellis champion index investing for everyone, including themselves.  They give this caveat:  “…one of us has a major commitment to the stock of a single company—an unusual company called Berkshire Hathaway.  He has owned it for 35 years and has no intention to sell” (The Elements of Investing, p. 49).
o   Say no more!  Index, index, index, and do whatever else you want to do with a percentage of your investing monies.  I appreciate people who tell you what they do and why, and aren't ashamed to tell how they've fared.  You index, you make market (less a bit, of course).
·        I appreciate Jim Cramer for his entertainment value (much in the same way that I like Rush Limbaugh, et.al.).  (Though if I want real entertainment I can always look at the latest wisdom of Paul Krugman). Can you find where he provides his annual investment returns for you to compare to the market (or anything else)?  Of course not!  He is in the entertainment business.  As long as he doesn’t claim particular investing wisdom I am fine with Mr. Cramer doing what he does best—entertaining people who are donating to the wealth funds of various brokers.
o   I did a quick search for his personal record and couldn’t find one.  Anecdotal evidence doesn’t convince me one way or the other.

·        Look, I know what return I made last year and know how it compared to a stock market benchmark.  It’s not that hard with software.  The proof is in the pudding.  Put up the data or shut up!!!

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