tag:blogger.com,1999:blog-5465015914589377788.post7030733774339335874..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: The Overconfidence GapMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5465015914589377788.post-90000259153032222642015-11-26T15:33:30.465-05:002015-11-26T15:33:30.465-05:00Over-confidence can apply to many of life's pr...Over-confidence can apply to many of life's principles, I agree it can be a very bad trait to have when it comes to investing.My Own Advisorhttp://www.myownadvisor.canoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-31053529057242319472015-11-26T10:24:11.153-05:002015-11-26T10:24:11.153-05:00@SST: Right. As I said, you can't beat the p...@SST: Right. As I said, you can't beat the pros at their game, but you can win by not playing their game. Low-fee strategies won't beat the majority of pros before their fees, but such strategies will beat them after they charge their fees. And since after-fees is the only way we get access to pros, the low-fee strategies are best for almost all people.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-11955496035424801472015-11-26T10:19:30.904-05:002015-11-26T10:19:30.904-05:00"It’s staggering that we often think we can d..."It’s staggering that we often think we can do a little work on the side and beat full-time investment professionals at their game."<br /><br />This statement is kinda funny because, as data reveals, the greater majority of those same professionals a) don't beat each other and/or b) don't beat the aggregate market. <br /><br />Thus, you can be highly confident that it's not that difficult to beat the majority of pros if you follow a non-complex, low fee strategy. SSTnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-37096324300316327732015-11-26T09:36:53.179-05:002015-11-26T09:36:53.179-05:00@John: Sometimes overconfidence takes the form of ...@John: Sometimes overconfidence takes the form of arrogance, but not always. I've known people who are superficially pleasant enough, but their technical overconfidence makes them difficult to work with.<br /><br />I don't know that I've ever "talked down someone who is overconfident," but I've seen many cases where a smart young person joins my group assuming he or she (but usually he) will be the smartest person in the room. I've had the pleasure of working with many brilliant people over the years. Usually new young people figure out after a while that they're working with very smart people.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-71022678341664606812015-11-26T09:29:58.624-05:002015-11-26T09:29:58.624-05:00I've often found the same thing to be frustrat...I've often found the same thing to be frustrating - the gap you mention. When people are arrogant and really good, I find it much easier to tolerate the arrogance.<br /><br />Have you ever successfully talked down someone who is overconfident? I have a couple of friend who have this issue, but I don't know how to help them.John Ryanhttp://www.moneytimeblog.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-78888549274233864292015-11-26T08:07:42.541-05:002015-11-26T08:07:42.541-05:00@Big Cajun Man: It's often the case that peopl...@Big Cajun Man: It's often the case that people who don't need a piece of advice pay attention, and the advice just bounces off those who need it. I'm sure that most people who are dangerously overconfident of their investing abilities are also confident that this post doesn't apply to them.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-16732660634347969832015-11-26T06:46:00.353-05:002015-11-26T06:46:00.353-05:00So what you are saying that confidence is the most...So what you are saying that confidence is the most important part of investing and that will help me get rich, right?<br /><br />I am curious how many folks would read your warning and interpret it to either think:<br />1) It doesn't apply to them, because they know what they are talking about<br />2) You need to be a confident investor<br /><br />I think I got your message.Big Cajun Man (AW)http://www.canajunfinances.comnoreply@blogger.com