A Few Notes on Jackass Investing
April 10, 2012 - Big Ideas
Michael Dever (founder of Brandywine Asset Management) introduces his 2011 book, Jackass Investing: Don’t Do It, Profit from It, by stating: “…this book is designed to comfortably provide novice investors with a plan to follow to manage their money – one that they are unlikely to encounter if they are only exposed to the conventional financial wisdom. It’s also intended to provide a rational alternative to the beliefs of experienced investors who may have fallen prey to the myths; written to help you to specifically exploit some of the countless opportunities that are ignored by, and very often created by, the mass of irrational investors who litter the virtual Wall Street landscape. …the most important theme of them all is the fallacy of the myth that ‘There is No Free Lunch.’ In fact there is a free lunch, a veritable free threecourse buffet. It’s called true portfolio diversification…a systematic process that results in a truly balanced diversified portfolio whose returns are derived from a multitude of return drivers.” Using anecdotes and references to some relevant research in describing and refuting financial market myths, he concludes that: Keep Reading