Scott Adams (Dilbert’s creator) has some new investing advice: Betting on the Bad Guys
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Perhaps you think it’s absurd to invest in companies just because you hate them. But let’s compare my method to all of the other ways you could decide where to invest.
Technical Analysis
Technical analysis involves studying graphs of stock movement over time as a way to predict future moves. It’s a widely used method on Wall Street, and it has exactly the same scientific validity as pretending you are a witch and forecasting market moves from chicken droppings.
Investing in Well-Managed Companies
When companies make money, we assume they are well-managed. That perception is reinforced by the CEOs of those companies who are happy to tell you all the clever things they did to make it happen. The problem with relying on this source of information is that CEOs are highly skilled in a special form of lying called leadership.
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But What About Warren Buffett?
The argument goes that if Warren Buffett can buy quality companies at reasonable prices, hold them for the long term and become a billionaire, then so can you. Do you know who would be the first person to tell you that you aren’t smart enough or well-informed enough to pull that off? His name is Warren Buffett.
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Again, I remind you to ignore me.
As usual he is funny, he also makes many good points. We have mentioned his financial advice previously: Financial Planning Made Easy, Scott Adams on Investing.