Averill: Gambling isn’t a good investment strategyWritten by Cap Averill II | | firstname.lastname@example.org
I don’t sell stocks, because I don’t buy stocks, because I believe that there are much better options for long-term investments these days.
I attended Ohio State, and SBCC, Santa Barbara, Calif., and we used to pass through Las Vegas when driving out. My friends would go to the casino. I would go fishing on lake Mead.
As gamblers, we outsmart ourselves. Who really gets in at the bottom and sells at the top? We lose on blackjack what we made on the slots, and then we have to pay the house. The house always has the deck stacked in its favor. No thanks.
My dad used to say all kinds of things I did not understand at the time, but later I saw the meaning. “In the market, gains are temporary but your losses are yours to keep.”
Because we are human we don’t sell at the top, and we hold onto losses until it hurts, then let go too soon. Our advisers hardly ever tell us when to sell.
Ben Bernanke lost nearly half of his net worth in a variable annuity during the crash of 2008. “Didn’t see it coming” ? And he is the man at the wheel. That’s comforting.
So I count on an adviser (who is 10 years younger than my favorite fishing pole) to tell me when to sell? (Nothing personal, young advisers, I was one of you a long time ago).
If you like leaving the party just when it starts getting going, and running into the burning house across the street, then you probably would make a good gambler.
Not for me. I want to have peace of mind, and results. I want you to have the same.
There is a better way.