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Chuck Jaffe: Portfolio Envy: The Other Guy’s Size Doesn’t Matter

FYI: Size matters, at least when it comes to your investment portfolio. More is definitely better.

What shouldn’t matter to you is the size of someone else’s portfolio, unless you stand to inherit their money or they plan to give it to you.
But in a world fueled not only by the traditional media but by Twitter, Facebook, blogs, specialty investment sites and countless online communities and their comment boards, investors are exposed to a lot of would-be experts, trash-talking about their gains and turning buying stocks and mutual funds into a competitive sport.
Regards,
Ted
http://www.marketwatch.com/story/portfolio-envy-the-other-guys-size-doesnt-matter-2014-11-14/print

Comments

  • "investors are exposed to a lot of would-be experts, trash-talking about their gains and turning buying stocks and mutual funds into a competitive sport"

    We've recently acquired one of those here at MFO, unfortunately. Certainly doesn't enhance the general atmosphere.
  • MJG
    edited November 2014
    Hi Guys,

    Many investors find it nearly impossible to do nothing when exposed to wild volatility swings in the marketplace. They lack the historical perspective that volatility is a market norm, not an exception.

    Participating in a website devoted to investment discussions tends to exacerbate any discomfort level, especially when other participants claim impressive rewards. Envoy comes into play.

    It is well documented that investors often trade to frequently and do damage to their end wealth. As Blaise Pascal remarked: "I have often said that the sole cause of man's unhappiness is that he does not know how to sit quietly in his room".

    The MFO forum encourages an exchange of investment ideas to hopefully better investment returns. That's a noble goal. I suspect it succeeds more often than it fails. But it does fail on occasion.

    Certainly, one of those occasions is when a blowhard promotes his winnings and his winning ways. Buyer beware. Consider his incentives. Consider the mixed role of skill and luck. As President Reagan advised: "Trust, but verify". However, verification is an arduous task on the Internet.

    It's recorded that Plato observed: "Wise men talk because they have something to say: fools because they have to say something".

    It's up to the MFO reader to judge the merits of a submittal. Is it from a wise man or a fool? The how, the why, the poster's forecasting record, and the references that support a position go a long way to inform that decision.

    I favor an unconstrained access to the MFO forum. Let each member judge for himself the worthiness of any posting given his knowledge, his shortcomings, his goals, and his preferences.

    Best Wishes.
  • "EVERYONE you meet knows something you don't".... unknown
    Its to YOUR benefit to find out what that is...tb
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