Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Bernstein: Psychopaths make the best investors
Old 09-21-2005, 06:01 AM   #1
Recycles dryer sheets
Join Date: Jun 2002
Posts: 248
Bernstein: Psychopaths make the best investors

Dr. William Bernstein (author of 'Four Pillars')

"I've always believed that the best investors are somewhat psychopathic and antisocial, for much the same reason; a belief that everyone else is wrong but you is an excellent antidote to herd behavior."


***** puts the "hoco" in Hoco-mania
intercst is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Bernstein: Psychopaths make the best investors
Old 09-21-2005, 06:52 AM   #2
Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,505
Re: Bernstein: Psychopaths make the best investors

Here's a link to the actual article:*

That's about the dumbest research ive seen.* *Even a rudimentary understanding of probabilities would have had someone betting every round.* *Being "brain damanged" should have lessened the likelihood one would have bet, because the educated, normal functioning man would have bet every time.

But on point, I believe such an investor is referred to as a Contarian.* Its certainly a logical approach, but not notably superior to other approaches (see how the contrarian at MSN is performing, for instance).* Its also a form of market timing, and it has been well documented that market timing doesn't work.

The folks at are practicing market timing as we speak, and as you might expect, the forum leader who does post his results continues to trail the "trained monkey"* *(20% to each fund).* * All that work and he isnt even breaking even to the autopilot approach.* *In fact, the last time i checked there, his compositie return was lower than each of the 5 respective funds!* * Heck, that almost takes effort to pull that off!

I'm surprised Berstein is praising any form of market timing. I thought he was for a diversified portfolio and just letting it ride.

azanon is offline   Reply With Quote
Re: Bernstein: Psychopaths make the best investors
Old 09-21-2005, 10:01 AM   #3
Full time employment: Posting here.
Patrick's Avatar
Join Date: Mar 2005
Location: Northern, Florida
Posts: 925
Re: Bernstein: Psychopaths make the best investors

Let's call B.T.K. and ask him where to put our money!
Retired in 2006 at age 49.

"Who among us is smart enough to learn from the mistakes of others?" - Voltaire
Patrick is offline   Reply With Quote
Re: Bernstein: Psychopaths make the best investors
Old 09-21-2005, 01:19 PM   #4
Thinks s/he gets paid by the post
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,674
Re: Bernstein: Psychopaths make the best investors

Just looks to me that the psychopaths are more like mechanical investing than contraian. And mechanical investing at least has the potential to be effective.
The folks at tsptalk are neat because they try different investments and so far the indexs have a better record. All my new TSP contributions are just going into a Lifestyle/target fund. I expect to roll over an old IRA into the TSP plan, at least it has low costs.
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Paul Farrell~ 10 tips for us irrational investors mickeyd FIRE and Money 3 01-09-2007 06:26 PM
Investors' actual returns versus total returns JohnEyles FIRE and Money 0 11-14-2006 12:20 AM
For the conservative investors GTM Other topics 20 01-10-2006 09:12 AM
You guys make me laugh... Bayfield40 Other topics 2 03-26-2004 05:34 AM
Make hay while the sun shines! Whakamole Young Dreamers 5 03-16-2004 11:31 AM


All times are GMT -6. The time now is 10:07 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.