Being a "Non-Stupid" Investor is a Good Thing.
The 5-Laws Of Human Stupidity & How To Be A “Non-Stupid” Investor
by Lance Roberts of Real Investment Advice, 5/20/19 Is a good, but long, read.
This past weekend, I was digging through some old articles and ran across one that needed to be readdressed on“human stupidity” as it relates to investing.
The background was a study done in 1976 by a professor of economic history at the University of California, Berkeley. Carol M. Cipolla published an essay outlining the fundamental laws of a force he perceived as humanity’s greatest existential threat: Stupidity.
Stupid people, according to Cipolla, share several identifying traits:
they are abundant,they are irrational, and;they cause problems for others without apparent benefit to themselves
The result is that “stupidity” lowers society’s total well-being and there are no defenses against stupidity. According to Cipolla: