Amnesia

Jason Zweig writes the following in “The Devil’s Financial Dictionary”:

Wall Street suffers from many ailments also, but amnesia is foremost among them. By burying the past, the financial community can disavow any responsibility to learn from its own mistakes and can minimise the odds that its clients will be able to learn from other people’s mistakes.

In the above paragraph, “Wall Street” is representative of investors at large. That is exactly why in the “Introduction” chapter of the book I have written the following words:

Our memory is short-lived. I would strongly suggest you keep reading this book every year to keep your memory refreshed. (That is why we are printing this book in hardbound format).

#RidingTheRollerCoaster – 253

Advertisements

Do we learn anything from crisis?

Jeremy Grantham was asked whether “we will learn anything from this turmoil”. He said, “We will learn an enormous amount in the short term, quite a bit in the medium term and absolutely nothing in the long term. That would be historical precedent.”

The memory is short, we tend to forget the lessons.

Keep reading “Riding The Roller Coaster – Lessons from financial market cycles we repeatedly forget”

Reading the book would serve as a reminder to what happened. You do not have to go through the pains of a crisis all over again. The lessons can be learnt and remembered simply by re-reading the book.

#RidingTheRollerCoaster –

What we learn from crisis

When asked whether we will learn anything from this (2008) crisis, Jeremy Grantham answered: “We will learn an enormous amount in the short term, quite a bit in the medium term and absolutely nothing in the long term.”

 

#RidingTheRollerCoaster – 37

Man and mania

Tulipomania, Ulipomania or IPOmania – “man” is the common denominator in all “manias”

 

#RidingTheRollerCoaster – 28

Read the history …

“… memory serves as a protection against financial illusion or stupidity” – John Kenneth Galbraith

 

#RidingTheRollerCoaster – 24