It’s become abundantly clear to me that there’s a high degree of gambling in today’s stock market. From the frenzied trading of meme stocks to the speculative bets on tech IPOs, investing often feels more like a high-stakes poker table than a carefully calculated financial strategy. This isn’t a new … Read More
Adam Smith: Beyond Profits: Understanding the Emotional Drivers of Investor Behavior
In his book The Money Game, Adam Smith explains how investors, regardless of size, are primarily motivated by the desire to be engaged and informed about their investments. They seek constant updates and reassurance about their stocks, earnings, and market events. They value the personal connection and interaction with their … Read More
Adam Smith: Constant Growth Cannot Continue Ad Infinitum
In Adam Smith’s book – The Money Game, he discusses why constant growth cannot continue ad infinitum. Here’s an excerpt from the book: There is one footnote to this business of looking at past and current success, and it is an arithmetic one. Again, our Senior Sisters may serve as … Read More
Adam Smith: Beware The Black Horsemen During Bull Markets
In his book Supermoney, Adam Smith provides a great illustration of investing psychology during bull markets. Here’s an excerpt from the book: A mass-circulation magazine asked me to explain to its readers what was going on. I had this Fellini scene: We are all at a wonderful ball where the … Read More
Adam Smith: Somebody ‘Must’ Know Something We Don’t
In Adam Smith’s book The Money Game, there’s a great piece in which he discusses the ‘logic’ of the market. Here’s an excerpt from the book: Logic, to an outsider, would say that you have a company selling at 10 and you go and do a lot of research on … Read More