Jackass Investing
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| Author | Michael Dever |
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| Language | English |
| Subject | Investing |
| Publisher | Ignite LLC |
Publication date | 2011 |
| Publication place | United States |
| Pages | 284 |
| ISBN | 978-0-9835040-0-9 |
| OCLC | 760086114 |
Jackass Investing: Don't do it. Profit from it. is a book written by Michael Dever published by Ignite LLC in 2011.
The book has also been released under the title Exploiting the Myths: Profiting from Wall Street's misguided beliefs.[1]
Overview
[edit]"Jackass Investing" is an investment book that challenges conventional investment wisdom[2] and "presents an entirely new system of thought."[3] The book describes 20 common widely held beliefs about investing[1] and explains why each is a myth and not a fact.[3]
The book is based on the trading philosophy of author Michael Dever,[4] which is based on broad strategy and market diversification.[5][6] According to Dever, the definition of "Jackass Investing" is taking unnecessary risk.[7]
The book was published in 2011, but Dever initially developed the idea for the book in 1999.[2] He decided to write "Jackass Investing" to systematically refute major investment myths. He believes that most investment professionals preach similar "myths" that prohibit investors from creating truly diversified portfolios.
Dever introduces the concept of "return drivers" and explains how to use them to create trading strategies, which are the components necessary to create a truly diversified portfolio.[3] A return driver is the core underlying reason that drives the price of a market.[1]
The Myths
[edit]The "myths" include the following:
- Myth #1: Stocks Provide an Intrinsic Return
- Myth #2: Buy and Hold Works Well for Long Term Investors
- Myth #3: You Can't Time the Market
- Myth #4: "Passive" Investing Beats "Active" Investing
- Myth #5: Stay Invested So You Don't Miss the Best Days
- Myth #6: Buy Low, Sell High
- Myth #7: It's Bad to Chase Performance
- Myth #8: Trading is Gambling - Investing is Safer
- Myth #9: Risk Can Be Measured Statistically
- Myth #10: Short Selling is Destabilizing and Risky
- Myth #11: Commodity Trading is Risky
- Myth #12: Futures Trading is Risky
- Myth #13: It's Best to Follow Expert Advice
- Myth #14: Government Regulations Protect Investors
- Myth #15: The Largest Investors Hold All the Cards
- Myth #16: Allocate a Small Amount to Foreign Stocks
- Myth #17: Lower Risk by Diversifying Across Asset Classes
- Myth #18: Diversification Failed in the '08 Financial Crisis
- Myth #19: Too Much Diversification Lowers Returns
- Myth #20: There is No Free Lunch
References
[edit]- ^ a b c "Author of "Jackass Investing" employs the multi-strategy systematic model he preaches". Opalesque's Emerging Manager Monitor. Opalesque. May 2012.
- ^ a b "Your Investments: Top fund manager shares some tips". The Jerusalem Post. November 17, 2011.
- ^ a b c "Jackass Investing: Don't do it. Profit from it". Futures Magazine. July 11, 2011. Archived from the original on December 15, 2012. Retrieved February 14, 2013.
- ^ Jay, Marley. "Contrarian investor Mike Dever shared with us 2 vital lessons he learned from his highly profitable association with legendary trader Paul Tudor Jones". Business Insider. Retrieved 2023-09-19.
- ^ "From rural Pennsylvania, Brandywine takes on the world". Automated Trader. Fourth Quarter 2012. Archived from the original on 2018-09-11. Retrieved 2013-02-14.
- ^ "Getting Along with Your MOM ('Manager of Managers')". Financial Trader. 4 (5).
- ^ "Myth: Largest Investors Hold All the Cards". ai-CIO.com. Asset International. January 16, 2013. Archived from the original on January 20, 2013. Retrieved February 14, 2013.
External links
[edit]- Jackass Investing - Official Website
- Brandywine Asset Management, Inc.
- Movies To Go, Inc
- Mike Dever on Twitter
- "Mike Dever of Brandywine: The Interview" | Michael Covel | The Trend Following Manifesto | February 14, 2012[permanent dead link]
- The Wall Street Journal This Weekend | May 5, 2012
- "Dever: Experts Are No Better at Managing Money" | Bloomberg TV | May 31, 2012
- "Mike Dever on the Podcast for a Return Visit: New and Extended" | Michael Covel | The Trend Following Manifesto | July 3, 2012[permanent dead link]
- Mike Dever on "Money Matters" | July 23, 2012
- "Breaking Down Investing Myths" | Bloomberg TV | July 24, 2012