If you think you are smart when an investment turns out great, you should think you are dumb when an investment turns out badly. This would probably give you a more realistic view of yourself as an investor.
I do not believe people who say that an investment did not work out and it is someone else’s fault. After all, no one forced you to make an investment.
I make money in the market because of the entrepreneurship and drive of the company’s insiders. Hopefully, I pick good companies and insiders who are on the up and up.
Thinking that it is only because insiders are crooks and this is why a company has failed does nothing for your education as an investor. I do not say that this never happens, because it does. That is why you should diversify your portfolio.
I think that people were charged with improper conduct after 2008 bear market (and 2000 bear market) because people wanted to put the blame on someone other than themselves for the bear markets. Markets and economies go through good time and go through bad times. I do not think that we are ever going to change this.
You know, in theory, technical analysis should not work. Why does it work? It works because of us. We investors are emotional people. Portfolio theory says that everything that is knowable about a stock is known and the stocks are priced accordingly. Really? Then why do we have gyrations in the stock market? Could it be that investors often act like a mob rather than investors?
I generally have a positive attitude to business people. I think that the vast majority of them try to do a good job in running their businesses. Sorry, but I would never invest in a company that run by anyone I thought was dishonest. I do not understand people who invest but think that all business people are crooks. And, their attitude says nothing good about them.
So, if you want to be a better investor, take responsibility for all your investments. Was it not Pogo who said, “We have met the enemy and it is us.”
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.