Set forth below is the text of a comment that I recently posted to another blog entry at this site:
Admit it, this all about you seeking some sort of glory and acclaim and not at all about errors in withdrawal rate studies or investing strategies.
I expect to be one of the richest people in the United States when this is over, Trebor. I also expect to be one of the most applauded. I have taken Buy-and-Hold and corrected the one big mistake in it to make it a workable strategy in the real world. That’s no small thing. That changes history. That helps millions of middle-class people.
It also helps all of my Buy-and-Hold friends. Bogle has shown on many occasions that he would like to come clean and begin posting honestly about stock investing once again. So has Bernstein. So has Burns. So has Swedroe. So has Pfau, So have lots of others. All of those people will see their dream come true when I win my battle to open the entire internet up to honest posting on safe withdrawal rates and scores of other critically important investment-related topics.
It’s not just Wade Pfau who would like to be doing honest research today. Ravick Sethie at Columbia wants to do honest research. And I think it would be fair to say that there are thousands of others. I have e-mailed close to 30,000 academics about the threats made against Wade Pfau. I can count the number of negative responses I received on one hand. I received SCORES of positive responses. The fellow at George Washington University told me that he will be adding a discussion of Valuation-Informed Indexing to his course next year (giving me and Wade credit for the work we did developing the concept). I had a number of others tell me that they are anxiously awaiting the day when they will be able to come clean and feel safe publishing honest research once again.
The Buy-and-Hold Mafia has degraded a lot of good people with their intimidation tactics. All that comes to an end once we have one major site recognize the right of one person (me!) to post honestly on one subject (SWRs). We have seen going back to the first day of our discussions that there is a HUGE demand for honest work on investing now that Buy-and-Hold has caused a fourth economic crisis. The millions who want to learn the realities are going to see their dream come true in days to come.
And, yes, I will have been the person with primary responsibility for making that happen. Because I cared too much about my fellow community members to agree to post dishonestly re the numbers that they use to plan their retirements. I apologize for nothing (except perhaps for not working up the courage to speak up sooner). I am happy to accept all the glory and money that is coming my way. I earned it. And that’s how our system works. We give glory and money to people responsible for huge advances that benefit us all because we want to see more of those advances. It’s a win/win/win/win/win.
I have from the first day invited others to win their share of the glory and the money. I told Greaney that I would be happy to work with him to determine the true safe withdrawal rate. He would have the most popular investing site on the internet today if he had taken advantage of that kind offer rather than engaging in behavior that will be putting him and a good number of his pals in a prison cell for a long time to come following the next price crash. Did his jealousy pay off for him? It did not. It never does.
Bogle is in the same position. He will be ten times as popular as he has ever been when he comes clean and gets back to the business of helping middle-class investors instead of filling up their minds with the smelly Buy-and-Hold garbage that he continues to promote so recklessly and so ruthlessly and so relentlessly to this day. And of course the same is true of all my blogger friends. Those who go honest will be the ones who will win all the applause following the next crash while those who continue pushing the smelly Buy-and-Hold garbage will spend the rest of their days in courtrooms. What fun! Please count me out. No can do.
I want everyone who advocates Valuation-Informed Indexing to win mountains of glory and mountains of money. Why? Because people respond to incentives. We are in an economic crisis because the Buy-and-Hold Mafia has seen to it that the only people who can work in this field are those who are dishonest enough to pretend that the last 33 years of peer-reviewed academic research doesn’t exist.
And there now exists a fellow who refuses to pretend that it doesn’t exist no matter how brutal the intimidation tactics of the Buy-and-Hold Mafia.
Hit me with you best shot, Trebor. I will win. The glory. The money. And the feeling of satisfaction that comes from knowing that I truly EARNED that glory and money, that I truly helped millions of middle-class investors rather than exploiting their weakness for the latest Get Rich Quick scheme to come down the pike.
Buy-and-Hold is the past. Valuation-Informed Indexing is the future. The good guys win on the last page of this little saga. I know. I took a peak before I put up that fateful post of the morning of May 13, 2002.
My best and warmest wishes to you, my long-time Goon friend.
Your jealousy is eating you alive. Please fix.