Sunday, September 24, 2006

a random walk

The post on September 17th (nny and the rich and famous) made a reference to stock pickers and market timers. I am certainly not against financial investments in stocks. However, most people have no business trying to pick stocks. Professionals, that is folks that tend to know what they are doing and do it for a living, do not consistently beat the market. Most of the amateur stock-pickers I have run into really do not know that much and tend to be attracted to get-rich-quick schemes. While not necessarily correlated, ignorance combined with greed is not good.

Greed is a very deceptive idol and a get-rich-quick attitude is not godly.


. . . [H]e who gathers money little by little makes it grow.
~ Proverbs 13:11b

The plans of the diligent lead to profit as surely as haste leads to poverty.
~
Proverbs 21:5

If interested in an explanation of why I think short-term speculation by stock-picking and market timing is a suckers game, please check out a post from last fall (what's a random walk?).

Be blessed!
RB

P.S. I once heard a trans-local church leader claim that Christians with a prophetic bent should be able to get rich by picking stocks. (Glory be to God!) In less than a year he was asked to step down from his leadership position. Not generally known is that he was abusing the organization's credit cards for his personal use -- if you consider taking amounts into the six-figure range as abuse.

1 comment:

Anonymous said...

"most people have no business picking stocks"

Agreed!

I remember what Ford once said about farming. Something like, "if I wasn't making money at it, I would be doing something else"

I guess that's my take on stock picking. I invite you over to my site for my story.