The most valuable skill an investor can acquire is the ability to distinguish theory from law. Examples of theory include forecasts, the relationship between gold and inflation, or anything ever written by an economist.
Examples of law include principles of diversification, statistical arbitrage, and mostly, the fact that anything good that ever gets posted online is done on those nights you’ve promised your girlfriend a nice dinner out and your full attention.
Michael Batnick, Director of Research at Ritholtz Wealth Management, posted a fantastic chart online a few days ago, and my phone lit up like a Disney fireworks show.
Phil: “Sorry, we’ve got to get home earlier than expected”
V: “Ok, sure, it must be something important”
Phil: “I have to tweet and blog about company weights within the S&P 500”
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