Set forth below is my response to a comment that was put to the blog last week charging me with having advanced a “screed” re Academic Researcher Wade Pfau:
You Goons say this sort of thing all the time, Trebor.
I am the biggest Wade Pfau booster alive on Planet Earth. Wade did the research showing that Valuation-Informed Indexing dramatically increases returns while also dramatically reducing risk. I am the person who developed the VII strategy. Why the heck would I want to destroy the credibility of the academic researcher who has done more than any other to advance the investing strategy that I believe is going to pull us out of the economic crisis? That’s insane.
What you are getting at, of course, is that I have argued that Wade made a terrible mistake to sacrifice his personal integrity and flip to the Goon side. He did. That’s going to follow him around for the rest of his lifetime. He will likely have lawsuits filed against him in days to come. He could land in prison. Is the popularity he has achieved by agreeing to side with the Goons and keep the Buy-and-Hold Tragedy going a few more months or a few more years worth it? I certainly do not think so.
Wade has two small children to worry about. I think in fairness that that should be mentioned. That’s a bit of an explanation. But it is not an excuse. If Wade does not possess the courage to stand up to the Goons, he needs to find another line of work. An academic researcher needs to report his findings honestly and accurately. People look to the academic research to learn the realities. You cannot let internet Goons intimidate you into saying things you do not believe.
Here is my grand summing-up article reporting on the many blog posts I wrote on my 16 months of e-mail correspondence with Wade:
I love Wade, Trebor. I loved the work we did together. I miss working with him. I respect him and admire him. It breaks my heart to think about what he has done both to himself and to the many people who look to him to give helpful guidance on stock investing. I implored him not to go down the path he has gone down. Is there anything you can think of that I could have said that I did not say? If you suggest anything that makes sense, I will say it.
I will always be Wade’s friend. Any time he wants to contact me, he will get a warm welcome. You call that a “screed”.” I call it friendship. As far as I am concerned, Wade and I remain friends to this day. Wade doesn’t see it that way because he is ashamed of his betrayal. That’s something he needs to work out on his own. If he reaches a point where he wants to reestablish contact, I can promise you with 100 percent certainty that I will be there for him. Nothing would make me happier.
Please take good care. If you happen to be in contact with our friend Wade, I hope you will send him my warm regards.
Rob
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