gunDriller
12th July 2012, 05:52 AM
My older brother is a conventional investor whose idea of buying gold is purchasing Barrick stock, and whose idea of food security is buying Monsanto stock.
And - one of his favorite financial columnists is Barry Ritholtz.
http://www.ritholtz.com/blog/top-10-investor-errors/
So, I had to ask myself, how do Precious Metals do when compared to Ritholtz' investing criteria ?
"Top 10 Investor Errors
1. Excess Fees
2. Reaching for Yield
3. You Are Your Own Worst Enemy
4. Asset Allocation vs Stock Picking
5. Passive vs Active Management
6. Mutual Fund vs ETFs
7. Neglecting the Long Cycle
8. Cognitive Deficits
9. Past Performance vs Future Results
10. Not Getting What You Pay For"
Excess fees - maybe if you pay too big of a buy-sell spread. But I don't think that happens to often to G-S.er's.
Reaching for Yield - Not Applicable.
You Are Your Own Worst Enemy - Not Applicable.
Asset Allocation vs Stock Picking - Not Applicable.
Mutual Fund vs ETFsg - Not Applicable.
Neglecting the Long Cycle - *** Here PM buyers do very well, since most of them are in it for the long term. ***
Cognitive Deficits - WTF ?!
Past Performance vs Future Results - I admit I thought that "this is it" when silver went up to $49 and gold went up to $1900. My feeling was that "this is the big enchilada, THE run-up". Now, looking at 200 DMA curves helps me focus.
Not Getting What You Pay For - Avoid Goldline and you probably won't have this problem.
I'd write Ritholtz & tell him how well we're doing but ... I'd rather have another cup of coffee :)
And - one of his favorite financial columnists is Barry Ritholtz.
http://www.ritholtz.com/blog/top-10-investor-errors/
So, I had to ask myself, how do Precious Metals do when compared to Ritholtz' investing criteria ?
"Top 10 Investor Errors
1. Excess Fees
2. Reaching for Yield
3. You Are Your Own Worst Enemy
4. Asset Allocation vs Stock Picking
5. Passive vs Active Management
6. Mutual Fund vs ETFs
7. Neglecting the Long Cycle
8. Cognitive Deficits
9. Past Performance vs Future Results
10. Not Getting What You Pay For"
Excess fees - maybe if you pay too big of a buy-sell spread. But I don't think that happens to often to G-S.er's.
Reaching for Yield - Not Applicable.
You Are Your Own Worst Enemy - Not Applicable.
Asset Allocation vs Stock Picking - Not Applicable.
Mutual Fund vs ETFsg - Not Applicable.
Neglecting the Long Cycle - *** Here PM buyers do very well, since most of them are in it for the long term. ***
Cognitive Deficits - WTF ?!
Past Performance vs Future Results - I admit I thought that "this is it" when silver went up to $49 and gold went up to $1900. My feeling was that "this is the big enchilada, THE run-up". Now, looking at 200 DMA curves helps me focus.
Not Getting What You Pay For - Avoid Goldline and you probably won't have this problem.
I'd write Ritholtz & tell him how well we're doing but ... I'd rather have another cup of coffee :)