For over 30 years, I have read every Barron’s Roundtable edition interviewing many of the world’s foremost money managers. Past and current members have included Peter Lynch, Mario Gabelli (still a participant), Bill Gross and, though not nearly as well known, one of the best stock pickers extant, Meryl Witmer. Accordingly, it was with great pleasure that I discovered a former member of the esteemed cohort is also an EVA reader.
In his popular book, Misbehaving: The Making of Behavioral Economics, Richard Thaler suggests that, “Many people have made money selling magic potions and Ponzi schemes, but few have gotten rich selling the advice, ‘Don’t buy that stuff’.” In fact, it can be downright unpopular to be the adult in the room when easy money seems to be falling from the skies like raindrops in Seattle in January.
Being old—like north of 60—doesn’t come with many advantages. However, in the investment game it does have at least one: being “mature” enough to remember past financial and business cycles.
At the beginning of 2018, we initiated a new EVA series titled “Bubble 3.0” with excerpts from David Hay’s upcoming book titled “Bubble 3.0: How Central Banks Created the Next Financial Crisis”.