Why money managers are hazardous to your financial health
A recent “debate” (see video below) between CNBC’s Joe Kernen and money manager Robert Pavlik shows why listening to most money managers can be hazardous to your financial health. Pavlik (along with almost every other money manager Kernen had questioned earlier this year) had not been willing to step up to the plate when the market was at 6500 and acknowledge at that time that it might be a good time to actually be doing some buying.
This herd mentality – which characterizes most of his ilk, as well as most average investors – is in stark contrast to that of value investors like Warren Buffett and Jeremy Grantham who recognize such opportunities for what they are, and don’t feel the need to “wait for confirmation” before putting money to work (or, conversely, before taking it off the table).
The argument between Kernen and Pavlik begins the first three minutes of the video, and then continues again at the six-minute mark.
