发帖
雷达卡
I bought Michael Batnick’s new book, Big Mistakes: The Best Investors and Their Worst Investments, because I absolutely love his podcast with Ben Carlson, Animal Spirits, and can generally tell that he and his entourage have a similar worldview to much of what we believe at my own wealth management business. Their outfit is committed to the fiduciary ethic and independent culture, and they are also a content-driven firm (entertaining and informative). I didn’t expect to learn anything new from Michael’s book, because as an arrogant 44-year old know-it-all running a $1.5 billion outfit, I assume I have heard it all, but at least thought there may be some fun refreshers. I was wrong. The book was filled with profound reminders of investment wisdom, and as we shall see in a moment, life principles as well.
What Batnick does in this well-written book is use the tales of investment greats from Jesse Livermore to Warren Buffett to Paul Tudor Jones to basically make various points about behavioral finance. Rather than write a more preachy or academic screed about behavioral realities in investing, Batnick uses the narrative of real life stories around these investment greats to make those points for him. He accompanies each chapter with enough history to be interesting, and enough commentary to be informative. Each chapter is a short read, but when all take in total, it is impossible to not feel well-informed, and deeply impacted. The various behavioral realities (and sins) that he highlights are well known for students of Kahneman, Thaler, and others, but they become personified when we dive deeper into the real stories of Merriweather, Ackman, et al.
There are moments in the book where Batnick seems to suggest that one of the great conclusions from all he is presenting is the futility of “beating the market.” I have heard him extrapolate that point in some book release interviews as well. I think he is selling the real value proposition of the book short. At the end of the day, Batnick (and all in our profession) are wise to re-define an investor’s investing goals in the context of real life needs, real financial outcomes, and returns necessary to achieve such. And it is entirely true that the active vs. passive debate is a gigantic distraction from the real headwind investors actually face (i.e. their own human nature and propensity to do the wrong thing and the wrong time). But I believe the great value proposition of this book is the narrative(s) used to unpack human nature and the mistakes that flow from it. In other words, I do not believe the dangers of behavioral finance are reduced to the futility of trying to beat the market; they are more expansive, more nuanced, more interesting, and often, even more fatal. Character traits of greed and fear, combined with psychological traits such as overconfidence and confirmation bias, are difficult realities to educate the investing public on, but they are at the core of the challenges in finance most practical to an investor’s life. Batnick delivered a potent message through this book on just these things and did it with history and clarity to boot.
But I would be remiss if I did not say that perhaps the most compelling part of the book was almost “anecdotal” - a sort of “sign-off” conclusion he provided to bid farewell. His story of his own journey into this business is not to be missed. I am a lot older than Michael and entered the business in 2001. And yet, my memories of my own journey in the 1990’s, lessons learned (and forgotten), and the permanent lessons of tenacity were all quickly flushed back in reading Michael’s story. He acknowledges several moments of divine providence that were necessary to line up in a certain way to create his career entrance as it were. I think he would enjoy hearing much of my story, as I surely enjoyed hearing much of his. And I think most investment professionals should share their stories and hear the stories of others, too. We have had surreal journeys (many of us), and there is a reiteration of experience, strength, and hope in these stories that I frankly find pivotal in appreciating our good fortunes, to work in this, the greatest business ever invented, doing this (fiduciary wealth management), the greatest calling ever invented.
Thank you, Michael, for a well-crafted book which affirms so much of what the investing public needs to hear, and what investment professionals need to hear as well.
David L. Bahnsen is the Managing Partner, and Chief Investment Officer of The Bahnsen Group, a bi-coastal private wealth management practice with offices in Newport Beach, CA and New York City, managing over $1.4 billion in client assets. David has been named as one of Barro...
David L. Bahnsen is the Chief Investment Officer at The Bahnsen Group, managing over $1.4 billion, obsessed with applying nuances of policy and economics to capital markets.
提升卡
置顶卡
沉默卡
变色卡
抢沙发
千斤顶
显身卡
京公网安备 11010802022788号
