frommi wrote: ↑Sun Apr 03, 2022 2:17 am
Maybe because you have your own bias and think "modern" portfolio theory is the holy grail? As Ben Graham or Charly Munger said, all intelligent investing is value investing
That would be hubris but I don't think that is my situation. I also don't believe a holy grail exists when it comes to investing and maybe nowhere in life. I just believe MPT is the most well thought out, researched and proven approach to investing that exists right now. If something better comes along I expect I'll change my approach.
You make a good point though. I was thinking that one way to see people's bias is that you state them openly. The problem is that requires self-awareness and we are talking about hubris when it comes to investing. How many people can do this ?
In stating that I'll articulate my bias which I think puts it all out there.
I am a rational data driven person, I don't believe that I (or anyone else) are investment guru's. As I follow a data driven approach I follow modern portfolio theory and invest in index funds. I want simple proven ways to manage my wealth and I want that approach to scale.
I am actually discussing how to invest a large amount of wealth now (10's of millions) and it's interesting seeing people's bias in play when it comes to how to do this. Some people want to build condominiums in order to improve the yield on this portfolio. No one wants index funds. Index funds are boring. They also provide the best risk reward return that you can get. I think the financial literacy of the average person is extremely low and I think the reason for this is basically people like bright lights rather than cold hard facts.
Do you think Ben Graham and Charlie Munger would be investment guru's if they were born today ? It's an interesting question right. My take is no chance.