Saturday, December 24, 2011

thoughts on my current investing skill


So if I'm so down on financial advisers and mutual funds why am I buying them?

Well,  I hate to admit it, but I am also angry with myself.

On my own I can't seem to do better than any of the financial adviser or their most common mutual fund. I am not dumb, but investing sure makes me feel dumb.

Investing just doesn't seem to work the way I think it should. What I quite logically think should work, rarely does. And what I think is a cockamamie idea quite often will provide wondrous returns.

There is a Dilbert comic where someone and the pointy haired boss are talking about investing. The pointy haired boss says he made a killing in gold. When asked about his investment strategy he says he bought gold because it was shinny.

I know there is more to investing than buying the shiny things, but I also think my investment tolerance, how many funds are under management in a mutual fund, portfolio re-balancing, and the efficiency of the stock market, are all irrelevant or incorrectly applied. More on all of these a little bit later.

The real problems with my investing strategy is, as I said, nothing seems to work, so I  do listen to the talking heads and end up all over the map.



I am sure I can do better than I have and better than a lot of mutual funds.

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