Comments on: Telling Someone About Undervalued Investments

By: Ken

Ken — Sun, 05 Apr 2009 12:03:24 +0000

I have never hired a financial planner. I have taught myself a lot of what I knowabout investing. If/when that times come you can bet I will ask for references. I want an advisor who is knowledgeable and willing to teach about investment choices. I have no doubt there are some bad ones out there.

By: Hang Wei

Hang Wei — Sat, 04 Apr 2009 10:06:05 +0000

I agree with the point made by ObliviousInvestor that ‘You don’t have to beat the market to be a successful investor’. I think that is quite well said, since the market may not be returning 20% yearly, but prudent investing over a long horizon, especially for young people, can definitely help in building that retirement nest. Why risk your entirement retirement fund to a so-called hot tip or chasing that latest investment strategy? So many people have ended up with nothing doing that.

By: IanB

IanB — Fri, 03 Apr 2009 21:19:49 +0000

Actually, there is a sure fire method of beating the market. Believe me, or no, I consistently do it. Check out Rule #1 Investing by Phil Town. The real problem is most people lack the required discipline to stick to their methodology consistently enough to be successful. Not that I think you should take my word for it – check it out. I found the book in my local library. He also has a blog online. Successful people like to tell you how they became successful. Proprietary mumble jumble is for people whose methods won’t stand the test of scrutiny. As for the financial services industry, they need us to buy and hold so they can collect their fees and commissions! Not that my prediction is based on Town’s work, but based on what I have learned over the last twenty years, or so, just beware, this market still stands a better than even chance of another bigger correction in the next year or so. I hope I am wrong, but if not, be careful!

By: Aaron

Aaron — Fri, 03 Apr 2009 17:59:56 +0000

I think the obvious comparison is to the recent controversy raised by Jon Stewart on the Daily Show regarding CNBC and Jim Cramer fueling the bull market sentiment leading up to the collapse of the housing and financial industry markets. The interview is particularly scathing. Stewart seems to side more with the "First Possibility" of giving bad advice to help their own interests. I've also heard of people creating hyperinflation fears in order to raise the price of gold, they themselves holding substantial gold investments. My advice is not to take any financial advice at face value, and constantly search out the contrarians' perspectives.

By: CD Rates

CD Rates — Fri, 03 Apr 2009 17:51:56 +0000

I went and visited his site and left a long comment. I don’t want to type it all over again, so ya’ll have to go over there and read it.

I also subscribed. A friend of David, is a friend of mine.

Happy Friday.
cd :O)

By: MoneyNing

MoneyNing — Fri, 03 Apr 2009 16:07:58 +0000

Oblivious Investor: I don’t feel that you are a cynical person at all. From my interactions with you, I actually feel a sense of happiness and optimism (which is great btw).

You are doing great in promoting index funds, since I truly believe it’s the best solution for most of us. Picking stocks is not for 99% of people since it requires too much research and time as well as discipline. If anything, ETFs are almost as far as most people should go.

By: ObliviousInvestor

ObliviousInvestor — Fri, 03 Apr 2009 13:23:05 +0000

Ah, fame… Great point there! Hehe.

And yeah, I’m sure I come off as a bit cynical at times. I’m honestly not as cynical as my writing might seem. I just feel that the “Sure! Beating the market is easy!” and “Here’s how to get rich quick!” side of the argument gets overplayed, and people need to be reminded that:
a) It’s not as easy as it looks, and
b) You don’t have to beat the market to be a successful investor.