Set forth below is the text of a comment that I recently posted to another blog entry at this site:
Boy Rob, you were having a couple of moments of clarity yesterday with talking about others view points. Alas this morning you fell back into full tilt hocomania. At least I think you did. Lord knows I’m not going to read beyond the first sentence. You need help, as I’m sure your family, neighbors, and everyone you interact with can see.
You Goons have a catch phrase that you use on me from time to time: “It’s not what you say, it’s how you say it.”
The Buy-and-Holders don’t mind people saying that they follow other strategies so long as they don’t point out the dangers of Buy-and-Hold. We all have a Get Rich Quick impulse within us. So, as long as the Buy-and-Holders are not called out on the fact that their claim that there is research supporting the idea of not exercising price discipline when buying stocks is false, their marketing pitch is unstoppable. Everybody is drawn to Get Rich Quick strategies and the Buy-and-Holders tell them that there is actually research supporting them. That’s one heck of a marketing message!
I want nothing to do with it. We are working at cross-purposes, Anonymous.
I have zero problem showing respect and affection for Buy-and-Holders. They have offered us many powerful insights. There wouldn’t be any Valuation-Informed Indexing today had Buy-and-Hold not come first. And of course there are millions of good and smart people who today believe in Buy-and-Hold. I was one of them myself for a long time. So it’s hard to imagine how I could be unsympathetic to the Buy-and-Holders or could try to silence them or anything along those lines.
But, no, I do not for two seconds want to see us as a society remain stuck with all the Buy-and-Hold garbage. We moved forward intellectually 33 years ago. Valuation-Informed Indexing is so far superior to Buy-and-Hold that it is a joke. When we permit honest posting on the last 33 years of research, we reduce risk dramatically while increasing returns dramatically. My job is to help us make that transition. My job is to take us out of the Buy-and-Hold dark ages and into a world in which millions of middle-class investors have available to them the first true research-based strategy, one that actually works in the real world.
Talking about other viewpoints is fine. But my aim is to see that we all achieve that transition from Buy-and-Hold to Valuation-Informed Indexing. ALL of my work is aimed at achieving that goal. Anyone who has somehow gotten the idea that I believe that there is some mystical, magical world in which Buy-and-Hold might produce good results for one or two long-term investors has somehow gotten the wrong idea. I want to see Buy-and-Hold fixed so that it can work in the real world. Valuation-Informed Indexing is Buy-and-Hold with the Get Rich Quick element removed.
That’s where I am coming from, in any event, Anonymous.
Other viewpoints — 100 percent A-OK.
Rob Bennett endorsing Buy-and-Hold — Never going to happen.
All of our problems today are rooted in the tentative way that those who have doubts about Buy-and-Hold express themselves. This is truly dangerous stuff. It has caused millions of failed retirements. It has caused the biggest economic crisis in U.S. history. A good number of people who were friends of mine in earlier days will be going to prison following the next crash because of the tactics they employed to “defend” this Get Rich Quick garbage. Support that? Huh? What? I don’t think so, man.
My best wishes to you and yours, Anonymous.