Set forth below are the words of a comment that I recently posted to the discussion thread for one of my columns at the Value Walk site:
Today, we see yet another example that you are living in a fantasy world when we see you make the following comment, Rob:
“I obviously would have earned far more than $500 million had you Goons not engaged in insanely abusive and criminal behavior and if big-name “experts” like Jack Bogle had not failed to act when informed of your behavior. I have offered to settle for $500 million because it makes sense for every single person involved for us to put the nasty stuff behind us and get about the business of spreading the word about the first true research-based strategy and thereby bringing on the greatest period of economic growth in our nation’s history.”
I stand by the statement, Sammy.
Wade Pfau holds a PhD in Economics from Princeton University. He should know pretty much all there is to know about stock investing. It should not be possible for Rob Bennett, some guy whose only claim to expertise in this field is that he figured out what buttons to push to have his words appear at investing boards and blogs, to teach Wade Pfau anything important in this subject area.
But I did.
Wade saw my writings on the internet and he contacted me and told me that he wanted to do research with me showing once and for all whether Valuation-Informed Indexing is the real deal or not. When he learned as a result of those 16 months of research that, yes, it all checks out, he was as excited as he has ever been excited about anything in his lifetime. He told me that he couldn’t sleep at night because of all of the implications of the findings of the research that we did together that he was thinking over. He told me that he had visions of winning a Nobel prize for the role he played in producing that research. That’s very, very, very cool stuff.
Wade is not the only one. I have seen that same general reaction from HUNDREDS of people. They all see how huge this is and they all want to direct their life energies to spreading the word about what we have learned during the first 34 years of the Shiller Revolution. We have seen big advances in the computer electronics revolution since 1981. But those advances pale in comparison to the advances that we have achieved intellectually in the investing advice realm as a result of the Shiller Revolution.
Lots of people became millionaires for playing a lead role in the computer electronics revolution. Their names have become household names. Bill Gates. Steve Jobs. Larry Page. And on and on and on and on. People naturally like the idea of becoming millionaires by helping their fellow humans in big ways. So the natural expectation is that every site on the internet would on a daly basis be producing materials helping us all to appreciate the breakthroughs we have achieved in the first 34 years since we learned that the Buy-and-Holders got it wrong and that in fact valuations affect long-term returns and that stock investing risk is thus not static but variable.
We haven’t seen that. Huh? What’s going on?
What’s going on is the result of a big difference between the computer electronics field and the investing advice field. There wasn’t much of a computer electronics field to speak of in 1981. So no one felt threatened by the huge advances that were achieved and those advances benefitted everyone living on the planet and made the pioneers who promoted them very rich men and women. In 1981, Buy-and-Hold was already in place. There were thousands of wealthy and powerful people whose careers depending on it remaining in place. So we have seen huge opposition to the idea of moving forward in the investing advice field.
We need to move forward. This is too big. Our economic system wont survive unless we do.
Given that we are going to move forward, the best thing is to move forward as quickly as possible. We hurt too many people by failing to do so.
People respond to incentives. The practical reality in today’s world is that there are few positive incentives for incorporating what we have learned from the last 34 years of peer-reviewed research into our investing advice and many negative incentives for doing so. So word has not spread. Millions continue to believe in Buy-and-Hold to this day
But that is going to change following the next price crash. That’s certainly what I believe in any event. When it happens, all the people who played the role of pioneers will be handsomely rewarded for helping us all to get to the other side of The Big Black Mountain. Why would they not be? Bill Gates was handsomely rewarded. Steve Jobs was handsomely rewarded. Larry Page was handsomely rewarded. That’s how things are done in our society. That’s why we are so rich a people — we reward people who put their necks on the line and thereby bring us all to a better place.
That’s my sincere belief re all this in any event. I haven’t been able to earn a dime for the past 13 years because of all the static generated by you Goons. But I expect to be earning millions and millions of dimes for the 13 years of work effort on the other side of the next price crash. I am not trying to keep anything to myself. I am thrilled when others join me and make their claim to millions of dollars of financial rewards to be delivered following the next price crash. I am in the unusual situation of wanting more competitors for the niche that I own because more competitors means the word spreads more quickly and that’s a very good thing for all of us.
I think we have a tiger by the tale here. I think that Shiller’s finding that the Buy-and-Holders got it wrong in a fundamental way is the most important peer-reviewed finding in the history of investing analysis. I think the man started a Revolution.
That’s my sincere take. I could be wrong. I’ve been wrong before and, if it were happening again, I would probably be the last to know. But that is definitely my sincere take.
I guess we will just have to exercise a little patience and see how it all plays out before us as time goes on. That works for me. I hope it works for you too, my longtime Goon friend.