Set forth below is the text of a comment that I recently put to another blog entry at this site:
Rob, what do you think the ‘final solution’ for the Goon problem should be?
That’s a great question, Sensible.
What I believe is that we all need to recognize that we are all on the same side and that we all need to work together to get things on the right track.
The Buy-and-Hold advocates are good and smart people. They are responsible for a long list of amazing breakthrough insights. I want everyone to know that. I want to be viewed as one of the lead people saying that. I HATE it that the public perception of me is that I am anti-Buy-and-Hold. I AM anti-Buy-and-Hold as it is currently promoted by most Buy-and-Holders. But I LOVE what the Buy-and-Holders did for all of us. I obviously love Valuation-Informed Indexing and VII is just Buy-and-Hold with one change (because of a perfectly understandable mistake that was made in the pioneer days). I want to be working WITH all of my Buy-and-Hold friends, not against them. So the very first step to bringing all the nastiness to an end is recognizing the amazing contributions that the Buy-and-Hold Pioneers brought to the table.
The second thing is that we need to bring all the nastiness to a full and complete stop. Not a partial stop. A FULL AND COMPLETE stop. We need to do that by the close of business today. I’d like to think there there will not be one person raising any sort of objection to that at this point in the proceedings. Let’s roll!
The third thing is that we need to educate the public as to the wonders of Valuation-Informed Indexing. For obvious reasons. We all want to bring the economic crisis to an end. We all want to bring on the greatest period of economic growth in U.S. history. We all want to reduce the risk of stock investing by 70 percent. We all want millions of middle-class people to learn what they need to learn to be able to retire five to ten years sooner than they ever before imagined possible. We all want to free everyone in this field to do honest, productive work. We all want to see thousands of people become super-rich developing the tools we all need to become truly effective long-term investors. This one would be a no-brainer if only Shiller had published his “revolutionary” (his word) research in 1961 rather than in 1981.
The fourth thing is that we need to subject Valuation-Informed Indexing to the same level of scrutiny to which I have been arguing we should subject Buy-and-Hold. My good friend Jack Bogle does not have complete confidence in Buy-and-Hold. His behavior re all these matters makes that clear. But Jack does not have full confidence in Valuation-Informed Indexing either. That is also clear. We need Jack coming clean re his doubts re Buy-and-Hold. But we also need him working as hard as he can to find holes in Valuation-Informed Indexing. And we need that from all the other Buy-and-Holders as well.
That’s my four-step program: (1) Make it clear to all that Buy-and-Holders and Valuation-Informed Indexers are on the same team and are pursing the same goal — using the peer-reviewed research to learn how stock investing works in the real world; (2) Bring the Ban on Honest Posting to a full and complete stop by the close of business today; (3) Spread the word about Valuation-Informed Indexing to every investor in the world; and (4) Continue the learning experience by applying the same tough-minded questioning that we have applied over the past 12 years to Buy-and-Hold to Valuation-Informed Indexing as well.
I see this as a win/win/win/win. My feeble, human brain is not even able to imagine any possible downside, Sensible. Does the four-step plan that I have outlined make good sense to you as well?
Rob the Ever-Hopeful