The One Coin debacle

yosef shompeter

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In vain I searched for a topic which goes by the name of "Humour".
This came on the RTE current events prog today. It deals with this posh lady from -- the Balkans, either Romania or Bulgaria ... Oxford educated and accustomed to fashionable dress and luxurious jewelry, she went on the lecture circuit urging people to invest their hard-earned in the bright new "One Coin".
She trousered (so they say) €4 Bn... Four Billion Euro and then scarpered. Last known siting was on a Ryan air flight from Bucharest to Athens whereupon she disappeared. Rumour has it that she went for a face-lift, so facial recognition software won't be much good in locating her☺
 


Lumpy Talbot

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No
I don't think so. Not really, no. There's just being in the right place at the right time. The only skill or courage involved is in recognising that you are in the right place at the right time.

That's with self-made people. Inherited wealth is always only going to be dissipated, if not in the second generation then definitely by the third. There can't really be a smart investor unless that smart investor is holding information the rest of the market doesn't have.

I suppose long term investors like Warren Buffett would be described as smart but then there's nothing overly complex about what Warren Buffett does. He has his own long term style which more often than not beats the indices. Maybe the only smart area would be in recognising what dynamics are driving any market and which ones are likelier to be driven up rather than down.

I suppose the market decisions that match human behaviour the best, and interpret them most accurately, are the decisions that are more likely to produce success, or profit, however you choose to measure it.

I guess that that's why derivatives are so dodgy. They are inherently a shadow of the true market and when priced independently of the underlying market become incredibly deceptive. The further they move away from human rationality the more dangerous to the market they become.
 

Hillmanhunter1

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Is there such a thing as a ‘ smart ‘ investor-
Yes, there is, but the smart investor is a cautious investor. In almost 40 years working in financial services of one sort or another I've yet to come across better (or more succinct) advice that that offered by Dilbert. Here is Dilbert’s One-Page Guide to Everything Financial:
  1. Make a will.
  2. Pay off your credit cards.
  3. Get term life insurance if you have a family to support.
  4. Fund your 401k to the maximum.
  5. Fund your IRA to the maximum.
  6. Buy a house if you want to live in a house and can afford it.
  7. Put six months worth of expenses in a money-market account.
  8. Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement.
  9. If any of this confuses you, or you have something special going on (retirement, college planning, tax issues), hire a fee-based financial planner, not one who charges a percentage of your portfolio.

For Irish people read 4 and 5 as meaning take full advantage of any tax efficient ways of saving for retirement.
 


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