Oct

13

magWould it be wise to speculate a little now consciously in the investment account in which bankers were speculating so unconsciously and so unwisely in 1929?

That's from the May 12, 1933 issue of "American Banker". I guess most bankers answered a resounding NO back in 1933 just like they are answering today. That quote reminds me of a little anecdote from a few years back . A Japanese fund manager was greeted with resounding ridicule when he talked about the Japanese approach to buy stocks only when prices are rising aggressively rather than waiting for a market drop. His reasoning was that buying stocks with rising prices will insulate the portfolio manager from criticism if he should fall. The portfolio manager could easily justify his buy decision by stating that everyone was buying and he was just part of the herd. If the manager bought a depressed stock that fell further, he would be accused of individualism and subject to scorn. It always amazes me how circular the world is. Today's chumps are tomorrow's heroes. Be humble or prepare to be humbled, as the saying goes.


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