Stop Listening to Stock Pickers: The Dangerous Truth About Market “Experts”
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Stop listening to bloody stock pickers. People on well used to be people that were on TV. Then it moved on to I was also message boards back in the 1990s. CNBC had a guy on every day at 12 o’clock in the 90s named Dan Dorfman, who was he was basically collecting a VIG.
They caught them based upon pushing certain stocks that are out there. Now they’re all over social media. I don’t know how it’s legal. I really don’t, but it is. It is. You can go on and you can say whatever you want, buy this, push that, push this crypto, push this nonsensical investment. I’m gonna use an example. I’m gonna pick on my old
friend Jim Kramer, but got my old friend Jim Kramer. And again, he’s a classic case this over the years. With, you know, so much confidence, he goes on air and he makes all sorts of picks and calls and whatever it may be and he’s never held accountable for statements can like many of the others that you’re seeing on these programs. They’re never held.
account. And quite frankly, I’ve explained this before what they do is irresponsible. It’s irresponsible in the sense that you know, x, y, z may be good for you, but it might not be good for your next door neighbor might not be good for your grandmother. There’s certain situations portfolios need to be built upon a myriad of different things. Okay, not just a guess that something is going up. Okay, risk tolerance plays a part in letting risk lead to ruin.
I can go on and on and on, but this is, this is how it goes nowadays. back in, it’s actually February. This is 20, 26 years ago. Jim Kramer gave a speech called winners of the new world. Yeah. I remember this was the street.com. Remember he opened that thing up.
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He said the only stocks, bluster, confident, I’m Jim freaking Kramer, man.
Yeah, the only stocks worth owning. 724 Solutions, Ariba, Digital Island, Exodus, InfoSpace, Inktomi, Mercury Interactive, Sonera, VeriSign, and Veritas Software. His exact words. I wouldn’t own any other stocks in the year 2000.
Again, in his infinite arrogance, hubris, whatever it may be. Again, this is somebody that doesn’t know what he doesn’t know. I don’t know how people actually talk like this, but he did. Again, he made a lot of money. Made a lot of money being wrong.
Told them to throw out every every investment, every investing textbook ever written. Throw them all out. Yeah, well, don’t listen to Benjamin Graham. No, no, no, no. It’s new. It’s different. This time it’s different. Yeah, this is 2000 and he was still holding on to this time. It’s different. New paradigm, new economy, which we laughed at at Markowski Investments. We told you was stupid back in the 1990s. He said,
Every investing textbook was now useless. Old rules didn’t apply anymore. I remember those lines. Earnings don’t matter anymore. The internet changed everything.
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Amazon wasn’t on that list and Microsoft wasn’t on that list and Apple wasn’t on that list. Fast forward 15 months.
Fast forward 15 months, that portfolio was down 82%.
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OK, 82 percent. Two thousand nine. This is interesting. Those 10 stocks were either dead. Or bought out for pennies down ninety four percent.
Info space, one of the picks at the time was worth more than Boeing at its peak. Numbers were fake.
You could have made a fortune just betting against him. And I remember.
when the whole financial crisis was getting into gear and he goes on air and he’s telling everyone that Bear Stearns is perfectly safe. Everything was okay. When a year prior to that, when we saw the hedge funds blow up at Bear Stearns, we were warning people. Then in the midst of the financial crisis, he was on with, was on, how was it? Yeah, was it Meet the Press? was a Sunday morning. Now how I remember this, I was giving a,
Speech was giving a speech in North Carolina again. I remember staying at this hotel out not far from Asheville. It’s called the Grove. I remember I thought it was haunted and He went on air and told everybody to sell everything if you need your money within the Next couple of you need to sell everything probably some of the worst advice you could have given but that’s okay He’s a go-to guy CNBC. He’s got his own
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Television show there’s nothing wrong with being wrong Okay, it happens But to go out there with so much freaking dang confidence And telling people to do things and you’re wrong at a regular base at some point in time You say, know, you know, maybe I should be doing something else. I Know Jim. He’s got a big house there in in Tuscany now, I don’t do you
bed and breakfast or something like that, man. And just maybe stop losing people money. Watchdogonwallstreet.com.
