Wednesday, April 15, 2015

What's Wrong with Finance

There is an interesting article by Morgan Housel at his blog call What's Wrong with Finance.

The number one problem he has is the extreme bias towards action which he puts down to the exploitative fee arrangement. I agree that there is a bias towards action and this is a big problem. I think I have made money because I bought good companies at reasonable prices and then just left them alone in my portfolio.

Yes, there were times I had to take action. A company maybe bought out or company gets into difficulties. The odd time I did have to sell companies because I thought that they were currently going nowhere and I did not see any change in the future. This did not happen often. But, mostly I bought companies and held on to them and made money.

Morgan Housel has 3 more problems he sees, but I think these have been mentioned before.

On my other blog I am today writing about Sun Life Financial Inc. (TSX-SLF, NYSE-SLF) ... continue...

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