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Whether you copy Warren Buffett, your frat bro, or — God-forbid — CNBC, it seems that few are willing to take a risk on picking their own investments.
But as Mikhail Gorbachev said, “It is better to see once than to hear a hundred times.”
It is scary to pick your own investments. Surely, the oracles on Wall Street know better, and it’s worth paying those 2% management fees to eat from their table. Getting an edge in the stock market seems like it would take a lifetime of discipline and research. And well, it does.
“Most people use spreadsheets as an alternative to thinking.” — Richard Thaler
So either put in the work or stick to a stupid simple index investing strategy.
But for your own sake, shut off the Jim Cramer.
Stockbrokers Don’t Know Squat
What’s the difference between a stockbroker and a used car salesman?
The car salesman knows when he’s lying.
If you don’t understand precisely why an analyst, broker, or talking head is suggesting a stock, don’t touch it. That means the nitty gritty details and all. Do you understand the historic performance of the business’s financial statements? No? Well then you are just playing Russian Roulette.
