Why believe a title that says I’d know how to tell dumb from smart money? Because I’ve been both and learned from financial scars accumulated since 1987. I’ve also taught a behavioral investing course called “The History of Human Financial Stupidity — Including Mine”. I had no shortage of my own dumb money cases to give students. In Liar’s Poker Michael Lewis defined Wall St as a system designed to transfer money from the weak to the strong. Inserting dumb and smart money into this definition makes sense. My dumb money cases have certain features in common. So do the…...
How not to be dumb money
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