On the issues that gets sidestepped in the financial media is that people invest differently according to their needs. When a prominent investor makes the case for a certain investment we need to understand their investment profile is likely very different than your own. We should always assume investors are talking their book, even if it they are not running a “book” anymore.
Michael Burry, an investor who figured prominently in Michael Lewis’ book The Big Short, is interviewed in which he gives his opinion on a number of different investments. What investors need to understand is that Burry has already made his millions and likely is investing with a different mindset than your own. So whenever a prominent investor is talking investments recognize how your situation differs from theirs and how it might affect their advice. In today’s screencast we look at this phenomenon.
Posts mentioned in the above screencast:
Michael Burry is buying farmland and gold. (Bloomberg, Clusterstock, Street Capitalist)
Is obsession necessary for success in the financial markets? (Abnormal Returns)
Daily chart of the SPDR Gold Shares ETF (GLD). (Finviz)
Michael Lewis is back with a piece on the near-certain bankruptcy of Greece. (Vanity Fair)