In the world of investing, we get to see and hear a lot of talking heads, and also a lot of, shall we call them writing or may be pitching heads? Using the present day technology, they talk and write, and then write and talk, about what they perceive to be quite a sensitive matter for most, which is money management.
I find this group, both unethical and unreasonable, and I like to call them d-heads. But hey, they are there everywhere, taking advantage of the public's weakness. People lack common sense is given, and I am quick to hold them responsible for their actions. You can't expect to be sympathized with your own stupid actions, or may be some sympathy, but not much. Yet, I hold those people, who call themselves experts in much dissent. If you have any common sense, you can't help but despise them.
I find this group, both unethical and unreasonable, and I like to call them d-heads. But hey, they are there everywhere, taking advantage of the public's weakness. People lack common sense is given, and I am quick to hold them responsible for their actions. You can't expect to be sympathized with your own stupid actions, or may be some sympathy, but not much. Yet, I hold those people, who call themselves experts in much dissent. If you have any common sense, you can't help but despise them.
Let's come to what these people actually do.
The older types, the speakers: These are the true talking heads barking about what is going to happen to a stock or economy in the next moment, quarter, year and years into the future. They tell you how good they are and then implicitly attract you to their office. Usually they are brokers or money managers seeking your money.
The new types, the storytellers: I see that at least some of them develop a special knack of striking a chord with public. They start writing, put out blogs and websites, or send out email letters. These days it is common to tell stories about life, simplicity, personal finance, compounding, long term, contrarian ideas, value investing, and eventually, how they can help you with their expert knowledge. Their stories appear to be genuine - what with ideas of wealth creation, of beating other money managers, pictures of philanthropy, good deeds, et al - connecting straight with the commoners. Clearly, their end game is to persuade gullible people to spend money on their ideas, and the idea first is to help these types make money.
I have my own arguments as to why listening to them, and worse giving them money may not be a good idea. As much as I like to question those who give others money to invest (the first culprits), more importantly, I want to question those who solicit cash and use other peoples' money to invest.
Although, the mutual fund industry has done a lot of good to the investing public, especially through the creation of index funds, I find that the purpose of an investment fund is self-driven, not society-driven. Considering the perverse behavior of many money managers, I find it to be alright to whine.
To the investing public: Isn't it a pity that people lack common sense to ask a few questions before they handover their money to others? Can't they get that it does not require the brightest mind to realize that it is quite easy, and low risk too, to earn market returns? Just invest in index funds for long, and presto, you are on to something. If you are seeking extra returns though, I suggest that you enhance your knowledge about business and investing, and try a hand at that yourself. However, this is neither easy nor straightforward. There is a lot of hard work and some luck required to achieve excess returns. The solution is not handing your cash to others, but to prepare yourselves to be good enough to run your own investment operation. It's a long journey.
I laugh at people who claim to have the technique to earn extra returns on a consistent basis for a long time, and then ask money from others. It's really a shame. Some of the best known money managers have done it and are doing it. But, I would have admired them more if they had invested their own or borrowed money to create their own investment portfolio and earned those returns. They would be rich anyway if they had the talent.
I also know such investors who keep a low profile and mind their business of investing with their own capital, and become wealthy. My advice is to copy their methods if possible.
To the money managers: Do you really believe that you are good natured and want to genuinely see others wealthy and therefore, you are seeking money from them to make them rich and happy? Your conscience should answer this.
To the money seekers who do not have the talent to earn excess returns: Stop that nonsense. Clear your conscience. Seek an honest job and make a living.
Isn't that quite a bashing? A little uncalled for, but some fun too.
