Einstein’s Insanity

08/02/2011 by

You’ve probably heard Einstein’s definition of insanity…doing the same thing over and over again and expecting different results.

Seems that the majority of sophisticated institutional investors as well as individual investors could be deemed insane by Einstein’s definition. Seems like most people are looking for the money manager with the “hot” hand. This usually ends up with very disappointing results. Yet, investors continue the same process over and over again.

Listen to this short video were Larry Swedroe discusses this phenomenon.

http://moneywatch.bnet.com:80/investing/video/why-good-fund-managers-get-poor-results/6250481/?tag=video-river;video-load-river

When will investors wise up and realize past performance can’t be relied upon to predict future results. Instead, learn how to harness the power of the market and capture global market returns with a cost efficient portfolio at a risk tolerance that’s appropriate for you. Nothing insane about that!

Filed Under: Clarity Coaching Tagged With: ,
About Paul Nichols

Paul is the founder of Financial Abundance, a Registered Investor Advisory firm and EDI, an Estate Planning Firm with offices in State College and Lewisburg. He has been working with individuals, families and businesses for over twenty years, including many Fortune 500 companies. He has educated tens of thousands of people through seminars, workshops and various international speaking engagements where he shared the stage with many notable individuals such as Ronald Reagan, Robert Kiyosaki (author of Rich Dad, Poor Dad), Mike Ditka, General Schwarzkopf, and Newt Gingrich to name a few.

In 2000, after many years of traveling to consult companies and individuals, Paul decided to relocate from Colorado to State College, PA (his wife’s hometown) to develop a local advisory firm.

Paul operates under the core belief that education plus understanding leads to clarity and confidence; resulting in peace of mind. He is a proud father of three and devoted husband of 20 plus years.

Some of Paul’s accomplishments:
Regular contributor to the Centre Daily Times, via the “It’s Your Money” blog
Featured in the movie Navigating the Fog of Investing
Regular contributor to Town & Gown as the publications Investor Coach
Host of the weekly iTunes Podcast, It’s Your Money
Member of the Western PA Better Business Bureau
Member of the Centre County Chamber of Business and Industry