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More on irrational investors

Discussion in 'Off Topic' started by Mark Laszczuk, 23rd Sep, 2008.

  1. Mark Laszczuk

    Mark Laszczuk Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    793
    Location:
    Brisbane
    Since getting into investing, one of the issues that has always amazed me is just how many people who have a handful of investments (let's say a managed fund or two) who otherwise would have no idea whatsoever about business and investment principles, think they suddenly become experts in these fields. Now I don't claim to be an expert, very far from it, but I try to at least maintain a concious ability to understand that I know what I don't know. In other words, I don't equate holding a handful of shares or managed fund investments with having gone to Harvard Business School.

    I notice a lot of people who ask the question "What the hell was he thinking?" when an executive or CEO makes a really stupid decision about whatever. Well, it's usually because of self proclaimed 'expert' shareholders who think they know what they are talking about. If CEO's aren't chasing profits - even if they know that chasing said profits is a recipe for disaster - the shareholders scream for their blood. Then when everything falls apart, what do shareholders do? Scream for blood.

    I wouldn't want to be a CEO for quids. Imagine having to deal with several thousand people who think they know what they don't know... Anyway, the point of all this was to point out this article, which I thought was quite good and puts forward these issues in a rather more diplomatic way than I. Enjoy!

    http://www.nypost.com/seven/08042008/business/oaktree.pdf

    Mark
     
  2. carlosreynolds

    carlosreynolds Active Member

    Joined:
    11th Jun, 2008
    Posts:
    39
    Location:
    QLD
    Sounds like a really good article - I have printed out for reading at a later date. Thanks