In “FINALLY, SOME EXCELLENT INVESTMENT ADVICE: Don’t Play The Losers’ Game“, Henry Blodget makes a very good comment:

“if you choose to play this global sport [of investing], you will not be playing in a special Little League or low-stakes table with the folks like you who just aren’t that good at it. You will play in the same league as the best professional players in the world. And you should expect to do as well against them as you would do against the PGA Tour players at the Masters or the Green Bay Packers in the Super Bowl or the Yankees in the World Series or grand masters in chess… the only way for you to make money trading versus investing intelligently (owning low-cost index funds) is to out-play these top professionals.”

How do you think you’d fare on a tennis court with Roger Federer?

Would you win a sprint against Usain Bolt?

Would you end up in one piece after stepping onto a rugby field against the All Blacks?

If you’re picking stocks, that’s the sort of company you’re keeping. The professionals need to make money to justify their high fees somehow.

As the poker adage goes: “If you don’t know who the sucker is at the table it’s you.”

This blog is made possible by Fairhaven Wealth and its wonderful clients.

Sonnie Bailey

In his spare time, Sonnie likes telling people that he’s a former Olympic power walker, a lion tamer, or that he is an orthodontist. He is none of those things. In reality, Sonnie is a financial planner based in Christchurch. Through his business, Fairhaven Wealth (www.fairhavenwealth.co.nz), he provides independent, advice-only, fixed-fee financial planning services. Sonnie is a “recovering lawyer”: he has specialised in trusts and personal client work. He has also worked as a financial services lawyer for many years.

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