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!!!