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BEHAVIORAL INVESTING and FINANCE 101

Behavioral investing and finance 101 is Dr. Elior Kinarthy’s revolutionary training program in managing wealth by applying simple psychological rules to handling money, e.g., BLASH (Buying Low And Selling High) works like magic! As a maverick psychologist I have used these unconventional behavioral economics principles to my financial benefit and wealth accumulation for the last 20 years.

What are some of these unconventional rules?

Before we get into that, first, I want to thank you for visiting my blog, and, second, if you are like me and you enjoy being different from the crowd, an aspiring unconventional thinker, out of the box personality, maverick, definitely not a “politically correct” dude, let me be your mentor. I thrive on being different. I want you to teach you my revolutionary ideas about achieving your goals in life. Spread the news about a new financial beginning on Mail Street.

The first Rule of Wealth: Making more money than you expect to make depends on knowing what rules within your financial relationships to keep and what rules to discard.

Can you give an example?

Yes, your financial adviser or someone you trust suggests the common suggestion that you ‘Diversify your portfolio.’ You respond by saying that you “Prefer to ‘concentrate your position.'”

Can you give another example?

Yes, someone you trust tells you that the rule of ‘liquidity’ is important to follow in personal finance. You respond by saying that you don’t follow the rule of ‘liquidity’ for your assets.

What if your trusted friend asks you to defend your breaking these two conventional rules of finance?

Aha, as a free-thinker you will know how to answer his challenge:  ” Warren Buffett made billions as a maverick investor and he does not believe in diversity if you know what you are doing.”

What about ‘liquidity’?

“Liquidity is a political concept, not economic, a country needs liquidity for economic growth, not the individual. The individual can put all his money to work for him for additional profits, as long as his life-style is healthy, insured and responsible.

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7 Comments leave one →
  1. July 9, 2010 1:36 pm

    If buying low and selling high is a Maverick move then I have to ask, “why does it work?”

    Stocks only move because of consensus on value or lack thereof.

    Putting it another way, you can only make money going long a stock if everyone else around you agrees that you should be going long that stock.

    It stands to reason then that you can only make money by recognizing this value before everyone else. So really the heart of your system does not seem to be buying low and selling high, I believe that is only incidental. I believe that the core of your success relies on your ability to perceive that which has not yet apprehended by the masses. It’s not buying low, it’s buying lowest. Which to me sounds like a brand of value investing though I expect your value metrics are rather different than your run of the mill investor.

    Maybe it would be more fitting for you to crib a little from Virgil and call your method
    OVI “Obscuris vera involvens” rather than BLASH.

    • July 22, 2010 4:54 am

      These 2 concepts are not mutually exclusive. Let’s try to wed “Obscuris vera involvens” to BLASH. “BLASH” is a response to psychological signals when to buy or sell shares to maximize profits, while “Obscuris vera involvens” explain the philosophy behind the move. I visited your insightful blog “rightousharmony.blogspot.com and I would recommend it to anyone who wants to shift direction as an investor. You wrote, “common thinking did not lead to uncommon results.” Investors: get off common thinking! You quoted Shelby Foote, “Of all the passions the love of novelty rules the mind.” True, especially, “Our fleets come home loaded with every folly.” Investors: shun novelty in investing. “Obscuris vera involvens” and BLASH can systematize the prediction of phenomenon before it occurs by getting advance information. We operate in the category of Biblical Noah who thrived while all the others died! Thanks for a great blog and a great comment!

    • March 11, 2012 8:21 am

      As you remember I have already replied to your excellent analysis. I just want to acknowledge your observation that I am actually “not buying low, I am buying the lowest.” I bought AAPL for $7 a share, it’s now $545 a share, probably a world record. But, for my readers my wealth is not what’s important, what is important to them is how I did it. Well, the answer is, “I plugged the CEO into the variance formula and gave it a weight of 60%.” I spoke at UCLA about it last year and no investor was interested except a visiting PhD from China who said, “Impossible…is a CEO more important to share price than all the other variables combined?”

  2. January 30, 2011 3:50 am

    I’m a penny stock person myself but I enjoyed reading this post. I will keep on visiting your webblog regularly. Keep up the news!

  3. July 19, 2012 6:29 pm

    can you give us some tips on how you did to make your blog so popular? thanks a lot.http://www.simularfinanciamento.org

    • July 22, 2012 3:52 am

      Clarissa, I write in a behavioural-conversational way, useful topics, readers know my qualified background, my writing is easy to understand – and WordPress is the best format to introduce key words to anchor readers on the internet. Responses come from even China!

  4. August 28, 2012 3:37 am

    thanks for the post, it helped me a lot. lista de email lista de email lista de email lista de email lista de email

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