I’ve posted Entry #57 to my weekly Beyond Buy-and-Hold column at the Out of Your Rut site. It’s called Why We Hate Sound Investing Strategies Today (But Will Embrace Them Tomorrow).
Juicy Excerpt: To follow a Get Rich Quick strategy is an act of self-betrayal. It’s hard for us to convince ourselves that Get RIch Quick can work the first time we try it. But once we have tried it for a time and enjoyed some of the temporary payoffs it really does provide, we come to hate anything that reminds us of what our common sense tells us must be so.
Get RIch Quickers don’t fail to understand the realities of stock investing. They actively oppose consideration of them. Over time they come to embrace their acts of self-destruction and to hate anything that reminds them of the Reality Principle.
If investors were are logical as Buy-and-Holders presume them to be, they would seek out new ideas. Buy-and-Holders hold new ideas in contempt. They don’t want to hear about strategies that work better than Buy-and-Hold. They want to be comforted by promises that Buy-and-Hold really can work in the long run. Over and over again. Because the voice of common sense never entirely dies in any human.