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“Big names don’t always mean big gains” (Fabrice Taylor, Globe and Mail, Tuesday, February 19, 2013, page B12)

February 20, 2013

Why does you faithful servant Elior comments on this article and not million others? The reason is that this article by Fabrice Taylor illustrates an important lesson for investors – how not to lose money! The big name is Dennis Gartman who started an investment fund in March 2009, a best moment in the history to launch new billionaires. Why did Dennis and his investors not make money? Apart from the behavioral economic perspective that you should never invest in complex financial systems, I found an obscured psychological reason that should warn all future investors: Dennis called Warren Buffet an idiot! Hey, dude, never give your money to anyone to manage without checking out their personality first! Background and personality of people who handle your money affects their decision-making! Let me copy for you what Mr. Taylor writes, “My. Gartman’s high-profile was a magnet for retail investors, who rushed to buy the new ETF. Even they would have raised eyebrows at some of Mr. Gartman’s trades, though, such as shorting Berkshire Hathaway stock after calling Warren Buffet an idiot.”

Listen, we all arrive at adulthood with a few disturbing mental software scripts that we pick up along the way while growing up and learning a trade. Why should you suffer because someone picked up stereotyped notions about Mr. Buffet? The wisdom of this posting is: Avoid doing business with individual, corporations or governments that target specific individuals or groups for name calling and ridicule. You and your society suffers when the people you rely on for good decisions divert 50% of their thinking energy to gossip, trivia, name calling, and a host of other false decision-making influences. Follow those who concentrate 100% of their decision-making process on choosing which performing stock to buy!  Again. for those of you who love to make money, concentrate 100% of your energy on BLASH! (check out my terminology). I have a few friends who can focus that well, and they are as wealthy as I am! This posting reflects the beauty of Kahneman’s System 2! Thank you, Daniel.

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