“There Were Regular Suggestions That the Brad Pitt Character Would Soon Be Out of a Job, That He Was Unemployable Because He Was Going With the New, Exciting Idea Rather Than Sticking With the Old, Worn-Out One. Then, When Things Flipped, He Was Offered the Biggest Contract Anyone in His Field Had Ever Been Offered. That’s the Way It Works. New Ideas Are Worthless Until People Give Up on the Old Ideas and the New Ideas Come to be Perceived as the Only Ideas Worth Having.”

Set forth below is the text of a comment that I recently posted to the discussion thread for another blog entry at this site:

Which one of those people don’t have a job?  Which one’s are broke?

There were regular suggestions that the Brad Pitt character would soon be out of a job, that he was unemployable because he was going with the new exciting, idea rather than sticking with the old worn-out one. Then, when things flipped, he was offered the biggest contract anyone in his field had ever been offered. That’s the way it works. New ideas are worthless until people give up on the old ideas and the new ideas come to be perceived as the only ideas worth having.

Buy-and-Hold is the past, Valuation-Informed Indedxing is the future. That’s the point. If you read history, you would expect Buy-and-Holders to hate Valuation-Informed Indexing. Valuation-Informed Indexing is so much superior to Buy-and-Hold that Buy-and-Hold cannot possibly keep up. Buy-and-Hold claims to be research-based but Valuation-Informed Indexing really is. Buy-and-Hold is waiting to expire while Valuation-Informed Indexing is in the process of being born.

None of the put-downs from Buy-and-Holders mean a thing except to show that Buy-and-Hold is in a desperate place. What matters is what the research says. There was a time when the Buy-and-Holders were in favor of looking at the research. They were right the first time!

Rob