I’ve posted Entry #61 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called You Could Be Following a Get Rich Quick Investing Strategy Without Even Knowing It.
Juicy Excerpt: I will never forget a comment that a fellow put to an article on the Bernie Madoff fund in the early days of the scandal. Someone had described the fund as a Get RIch Quick scheme. This was not fair, this fellow explained, He had invested with Madoff. He had made over $1,000,000 doing so.
Before we laugh, we need to look at our own behavior and consider whether we have ever been guilty of entertaining such logical fallacies. There have been hundreds of occasions on which I have explained why Buy-and-Hold is a Get Rich Quick scheme and people have responded that they have been following Buy-and-Hold strategies for years and are ahead of the game as a result.