If
the dumb money investors are losing 69 percentage points or whatever mind - boggling figure Bogle is touting these days, then the smart money must be winning 69 percentage points.
The passive investors in Druce's example appear to be
dumb money investors that simply want to time the market, with Buffett as their counterparty.
Not exact matches
Bubbles usually pop after the «
dumb money» chases the smart
money, but until now, it has mostly been individuals and small
investors who have driven the Bitcoin phenomenon.
But those unsophisticated
investors, known behind closed doors as the «
dumb money,» retreated this year.
«People hear Middle Eastern backers and they assume deep pockets and
dumb money,» the unaffiliated private equity
investor said.
In the February 2009 version of their paper entitled «Not so
Dumb Money: The Prognostic Power of
Investor Sentiment over Time», JÃ ¶ rdis Hengelbrock, Erik Theissen and Christian Westheide measure the predictive power of German and U.S. investor sentiment indicators and test whether the market responds immediately to the release of new sentime
Investor Sentiment over Time», JÃ ¶ rdis Hengelbrock, Erik Theissen and Christian Westheide measure the predictive power of German and U.S.
investor sentiment indicators and test whether the market responds immediately to the release of new sentime
investor sentiment indicators and test whether the market responds immediately to the release of new sentiment data.
(Presumably by taking profits from «
dumb money», private
investors, similar).
Of course, the AAII survey polls retail
investors, or what some refer to as «
dumb money.»
Look, there's a reason why the pros call individual
investors «
dumb money».
In this book he attempts to explain why many
investors are the
dumb money that clever
investors profit from.
And to the degree that you are a smart manager, you can lessen your dependence on the big guys, and work with the hungry second tier, who know that
money can be made by implementing the ideas of smart
investors, so find ways to buy cheap bonds for smart
investors from
dumb investors, and sell rich bonds from smart
investors to
dumb investors.
Why
Investors Shouldn't Worry About
Money Funds (good article, but ignore the dumb idea of insuring money market funds, they are safe enough alr
Money Funds (good article, but ignore the
dumb idea of insuring
money market funds, they are safe enough alr
money market funds, they are safe enough already)
Also, active
investors can exploit fund flow information and take advantage of «
dumb money» coming into and out of stocks that make up large indexes.
In terms of the impact on market efficiency, I have begun to question my initial view that it was bad due to a question recently raised by @ 3rdmoment as to whether the marginal
investor that has shifted from active to passive has been smart or
dumb money?
Now don't think I'm referring to individual
investors, though they do
dumb things too; I'm really referring to those lemmings who get paid big bucks to lose manage other people's
money.
Warren Buffett points out a paradox: by understanding they are the
dumb money by purchasing a low fee index fund, «know - nothing
investors» become the smart
money.