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one of the best books recently put out was a book called your money your brain... its by JASON ZWEIG.. jasons dad was martin zweig, one of wall street weeks elfs and one of the few who actually got his clients out of stocks just before the market crash of 1987..
to bad he missed all the gains for years to come and ruined his great record.
anyway jason did extensive research on subjects while using brain scans and imagery while subjects made real time investing decisions using their own money..
key word"own money" as how we react and panic and freeze is very different when we have money at risk then when we dont.
bottom line is we are flawed as humans... brain scans showed we liked making money and the scans mimiced a drug user awaiting the next fix when we bought an investment
the flaw is we hate loosing money even worse. in fact the brain scans showed the fear of loosing money images were the same as the most vile things that could happen to a person, being puked on, stepping in poop etc..
as long as we are aware our minds will panic us and force us to do the wrong things at the wrong times we can fight back.
our brains have us running for cover at the drops and paralyzes us from buying when we should at the lows. our brains have us doing the opposite most of the time of what good investing takes...
the funny thing he found was once someone lost money and the fear of loosing was gone the loss actually had their scans back to normal again.
as they say we have met the enemy and he is us.... its our own brains that make most people fail at investing and then they blame the markets
The point being. I would think that he didn't need brain scans to figure that out as tere is plenty of evidence from the great depression. I really don't get the point of either of your post as they make little sense on investing that has been said a million times. Any first year college student is told that the markets are right there with gambing unless you have inside knowledge which many have found out by having too much in stocks.
tex you would think its common sense but believe me , there is so much confussion between whats speculating and whats investing... in fact what people dont know is more mind blowing then what they do know.
care to ask how many here on this forum have bought a handful of individual stocks that they thought would go up and were wrong and called it investing?
ill even include myself in my early years in that group.
The point being. I would think that he didn't need brain scans to figure that out as tere is plenty of evidence from the great depression. I really don't get the point of either of your post as they make little sense on investing that has been said a million times. Any first year college student is told that the markets are right there with gambing unless you have inside knowledge which many have found out by having too much in stocks.
its not having to much in stocks, its having to much in the wrong stocks,.
buying berkshire hathaway is like buying a diversified mutual fund,.. so many different sectors and companies are included .... buying a one trick pony is dangerous and speculative if its only one of a few companies your buying
I really don't get the point of either of your post as they make little sense on investing that has been said a million times. Any first year college student is told that the markets are right there with gambing unless you have inside knowledge which many have found out by having too much in stocks.
While I don't always agree with Mathjak's investing philosophy, his aren't the posts that don't make sense. Equating buying pieces of great American and international companies with gambling is just ludicrous.
And I don't know what business school you attended, but I never came across any professors in any year of college who said markets are right there with gambling.
WHY THANK YOU MADMAN... if you did agree with everything id worry, these are only my opinions and never let the facts get in the way of a good story ha ha ha .....
the fact that we all panic at the wrong time is old news.
we like to think that our brains are un-biased in their logic and that the same weighting and thought goes into deciding whether to flee, to buy , or to stay put and that our brains will tell us to do what we think is the right thing.
heres the new,news.what jason is warning us is we are playing with loaded dice... we are pre-disposed to having our brains gives us a weighted decision and if we arent careful or aware it can make us do exactly the wrong thing at the wrong time....
Last edited by mathjak107; 08-16-2009 at 07:36 AM..
While I don't always agree with Mathjak's investing philosophy, his aren't the posts that don't make sense. Equating buying pieces of great American and international companies with gambling is just ludicrous.
And I don't know what business school you attended, but I never came across any professors in any year of college who said markets are right there with gambling.
The point being. I would think that he didn't need brain scans to figure that out as tere is plenty of evidence from the great depression. I really don't get the point of either of your post as they make little sense on investing that has been said a million times. Any first year college student is told that the markets are right there with gambing unless you have inside knowledge which many have found out by having too much in stocks.
hmmmm they teach investing in the largest companies in the world is akin to gambling... i didnt know they changed the curriculum..... ha ha ha
thats just rediculious..
as far as inside knowledge? we all see what good that does, until you got inside info at all that companies competitors also so you know their plans most inside info pans out useless.
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