There’s no such thing as “smart money.” Everyone likes to poke fun at mom and pop investors, but the professionals are just as likely to succomb to performance chasing and cognitive dissonance. There are countless examples of intelligent investors blowing themselves up through the misuse of leverage or a trade gone wrong. Somehow the smart money is always more than willing to give these same people millions of dollars when they decide to raise a new fund a few years down the line.

via Things People in the Finance Industry Don’t Want You to Know – A Wealth of Common SenseA Wealth of Common Sense.

Categories: Finances


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