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Who do you trust?

Posted By Barry Ritholtz On March 19, 2006 @ 6:45 am In Investing,Psychology | Comments Disabled

I get some fabulous and informative email.

This one was from someone who was wondering about why they should follow my longer term calls if I missed the last short term move:

if i shouldn’t take your word on a
short term trade, how is it that i
should believe your long-term outlook? 

I found that email to be fascinating, so I responded in this manner:

1.  You shouldn’t take anyone’s word on anything — you should do your own homework.

2.  If you are going to rely on commentators for insight, I would
imagine you would rather rely on someone who is willing to admit error
than someone who is stubborn and/or arrogant.

3. You should go back and look at my many calls over the past 3 years.
Once you do that, and see the track record, you might be more inclined
to put some weight on my longer term opinions. (Of course, this would involve some work on your part)

p.s.   Read the Apprentice Investor [1] series . . .

What else can you say to an email like that, other than:  "Sorry, I’m not infallible"


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[1] Apprentice Investor: http://www.thestreet.com/tsc/landingpages/apprentice

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