tag:blogger.com,1999:blog-5465015914589377788.post8116515725638953673..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Don’t Invest Based on Emotional AccountingMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5465015914589377788.post-38852341509557638812009-02-11T21:20:00.000-05:002009-02-11T21:20:00.000-05:00Preet: Thanks. I wasn't sure how this one would ...Preet: Thanks. I wasn't sure how this one would go over, but apparently a few people liked it.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-15331851621010728372009-02-11T20:57:00.000-05:002009-02-11T20:57:00.000-05:00Brilliant post! I'm stumbling it and encourage oth...Brilliant post! I'm stumbling it and encourage others to do the same. :)WhereDoesAllMyMoneyGo.comhttps://www.blogger.com/profile/09185007666460707356noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-19199424868125089592009-02-11T08:49:00.000-05:002009-02-11T08:49:00.000-05:00Gene: I repeated the experiment with monthly figur...Gene: I repeated the experiment with monthly figures and was surprised to see how bad they look. The average compound emotional return is an 8% loss per year! This shows how important it is to look at your absolute financial position rather than just look at the change since you last checked.<BR/><BR/>Big Cajun Man: That was the idea behind picking a stock that performed so well. An average stock (or worse, Nortel) would look much worse.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-65360053886043367432009-02-11T07:37:00.000-05:002009-02-11T07:37:00.000-05:00The underlieing (sp?) assumption is you have bough...The underlieing (sp?) assumption is you have bought a stock worth keeping as well.<BR/><BR/>Just think if Dave bought Nortel? I think he'd be up on the roof<BR/><BR/>C8jAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-26989648383419795822009-02-11T00:59:00.000-05:002009-02-11T00:59:00.000-05:00Very interesting experiment. I never would have t...Very interesting experiment. I never would have thought of it. I guess the lesson is to look at your quotes infrequently. I would assume a monthly check of Dave's WMT with the same 2:1 bias would be more positive, yearly even better. The most positive would to be checking only on the last day of the entire period.<BR/><BR/>I check my stocks daily, but compare them to the major indexes. Thus, even a negative day could feel decent, if the benchmarks did worse. Still, I'm sure your thesis is valid in my case too.<BR/><BR/>Now, if I didn't have access to the internet, or a regular newspaper, I would be a happier individual. Interesting thought.genehttps://www.blogger.com/profile/05608927986297939720noreply@blogger.com